DUTCH BROS INC., 10-K filed on 2/13/2026
Annual Report
v3.25.4
Cover - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2025
Feb. 06, 2026
Jun. 30, 2025
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2025    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-40798    
Entity Registrant Name DUTCH BROS INC.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 87-1041305    
Entity Address, Address Line One 1930 W. Rio Salado Pkwy    
Entity Address, City or Town Tempe,    
Entity Address, State or Province AZ    
Entity Address, Postal Zip Code 85281    
City Area Code 877)    
Local Phone Number 899-2767    
Title of 12(b) Security Class A Common Stock, par value $0.00001 per share    
Trading Symbol BROS    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction Flag false    
Entity Shell Company false    
Entity Public Float     $ 8.5
Documents Incorporated by Reference
Portions of the registrant’s definitive proxy statement relating to the 2026 Annual Meeting of Stockholders of Dutch Bros Inc., which will be filed with the Securities and Exchange Commission within 120 days of December 31, 2025, are incorporated by reference in Items 10, 11, 12, 13, and 14 of Part III of this report.
    
Entity Central Index Key 0001866581    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Amendment Flag false    
Class A common stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   127,054,187  
Class B common stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   35,210,946  
Class C common stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   2,279,846  
v3.25.4
Audit Information
 12 Months Ended
Dec. 31, 2025
Auditor Information [Abstract]  
Auditor Name KPMG LLP
Auditor Location Portland, Oregon
Auditor Firm ID 185
v3.25.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 269,404 $ 293,354
Accounts receivable, net 18,387 10,598
Inventories, net 48,917 36,488
Prepaid expenses and other current assets 20,670 17,501
Total current assets 357,378 357,941
Property and equipment, net 824,502 683,971
Lease right-of-use assets, net 855,339 689,879
Deferred income tax assets, net 946,571 742,126
Other long-term assets 25,524 27,168
Total assets 3,009,314 2,501,085
Current liabilities:    
Accounts payable 37,625 32,225
Other current liabilities 99,173 83,361
Deferred revenue 55,658 42,868
Current portion of tax receivable agreements liability 7,696 71
Current portion of lease liabilities 36,466 27,235
Current portion of long-term debt 3,881 17,311
Total current liabilities 240,499 203,071
Deferred revenue, net of current portion 8,918 8,015
Lease liabilities, net of current portion 852,380 678,608
Long-term debt, net of current portion 196,295 219,755
Tax receivable agreements liability, net of current portion 813,353 627,763
Other long-term liabilities 0 8
Total liabilities 2,111,445 1,737,220
Commitments and contingencies (Note 16)
Stockholders’ equity:    
Preferred stock, $0.00001 par value per share - 20,000 shares authorized; zero shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively 0 0
Additional paid-in capital 581,261 517,074
Accumulated other comprehensive income 48 628
Retained earnings 99,508 19,666
Total stockholders' equity attributable to Dutch Bros Inc. 680,818 537,369
Non-controlling interests 217,051 226,496
Total equity 897,869 763,865
Total liabilities and equity 3,009,314 2,501,085
Class A common stock    
Stockholders’ equity:    
Common stock 1 1
Class B common stock    
Stockholders’ equity:    
Common stock 0 0
Class C common stock    
Stockholders’ equity:    
Common stock $ 0 $ 0
v3.25.4
Consolidated Balance Sheets (Parenthetical) - $ / shares
shares in Thousands
Dec. 31, 2025
Dec. 31, 2024
Preferred stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Preferred stock, authorized (in shares) 20,000 20,000
Preferred stock, issued (in shares) 0 0
Preferred stock, outstanding ( in shares) 0 0
Class A common stock    
Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock, authorized ( in shares) 400,000 400,000
Common stock, issued (in shares) 127,054 115,432
Common stock, outstanding (in shares) 127,054 115,432
Class B common stock    
Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock, authorized ( in shares) 144,000 144,000
Common stock, issued (in shares) 35,211 35,227
Common stock, outstanding (in shares) 35,211 35,227
Class C common stock    
Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock, authorized ( in shares) 105,000 105,000
Common stock, issued (in shares) 2,280 3,545
Common stock, outstanding (in shares) 2,280 3,545
v3.25.4
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenues      
Total revenues $ 1,638,159 $ 1,281,015 $ 965,776
Costs and Expenses      
Cost of sales 1,214,213 940,886 714,480
Selling, general and administrative 262,766 234,036 205,074
Total costs and expenses 1,476,979 1,174,922 919,554
Income from operations 161,180 106,093 46,222
Other expense      
Interest expense, net (28,305) (27,020) (32,321)
Other income 2,748 5,812 3,018
Total other expense (25,557) (21,208) (29,303)
Income before income taxes 135,623 84,885 16,919
Income tax expense 18,348 18,435 6,967
Net income 117,275 66,450 9,952
Less: Net income attributable to non-controlling interests 37,433 31,192 8,234
Net income attributable to Dutch Bros Inc. $ 79,842 $ 35,258 $ 1,718
Net income per share of Class A and Class D common stock      
Basic (in dollars per share) [1] $ 0.64 $ 0.34 $ 0.03
Diluted (in dollars per share) [1] $ 0.64 $ 0.34 $ 0.03
Weighted-average shares of Class A and Class D common stock outstanding      
Basic (in shares) [1] 125,329 103,504 62,074
Diluted (in shares) [1] 125,764 104,129 62,074
Company-operated shops      
Revenues      
Total revenues $ 1,509,329 $ 1,165,830 $ 857,939
Franchising and other      
Revenues      
Total revenues $ 128,830 $ 115,185 $ 107,837
[1]
1 Class D common shares were included in net income per share and weighted-average number of shares calculations in periods prior to June 2024. As of June 2024, all Class D common shares were converted to Class A common shares.
v3.25.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net income $ 117,275 $ 66,450 $ 9,952
Other comprehensive loss:      
Unrealized loss on derivative securities, effective portion, net of income tax (benefit) expense of $(224), $(83) and $10, respectively (951) (1) (748)
Comprehensive income 116,324 66,449 9,204
Less: comprehensive income attributable to non-controlling interests 37,062 31,107 7,755
Comprehensive income attributable to Dutch Bros Inc. $ 79,262 $ 35,342 $ 1,449
v3.25.4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Unrealized gain (loss) on derivative securities, effective portion, net of income tax expense (benefit) $ (224) $ (83) $ 10
v3.25.4
Consolidated Statements of Stockholders’ Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Additional Paid-in-Capital
Accumulated Other Comprehensive Income
Retained Earnings (Accumulated Deficit)
Non-Controlling Interests
Class A common stock
Class A common stock
Common Stock
Class B common stock
Class B common stock
Common Stock
Class C common stock
Class C common stock
Common Stock
Class D common stock
Common Stock
Beginning balance (in shares) at Dec. 31, 2022             45,544   64,699   41,056 12,411
Beginning balance at Dec. 31, 2022 $ 251,976 $ 145,613 $ 813 $ (17,310) $ 122,858   $ 1   $ 1   $ 0 $ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Net income 9,952     1,718 8,234              
Unrealized gain (loss) on derivative securities, effective portion, net of income tax impacts (965) (217) (269)   (479)              
Equity-based compensation expense 39,222 15,177     24,045              
Issuance of Class A common stock pursuant to vesting of equity awards, net of stock withheld for tax withholding obligations (in shares)             140          
Issuance of Class A common stock pursuant to vesting of equity awards, net of stock withheld for tax withholding obligations (1,895) (661)     (1,234)              
Issuance of Class A common stock, in exchange for surrender and cancellation of Class D common stock, and conversion of Dutch Bros OpCo Class A common units for surrender and cancellation of Class C common stock, pursuant to exchange transactions (in shares)             11,005   (4,070)   (5,192) (1,742)
Effect of equity transactions of Dutch Bros OpCo Class A common units   (158,152)     158,152              
Impacts of Tax Receivable Agreements 301 301                    
Tax impacts of other equity-related transactions 655 655                    
Issuance of Class A common stock sold pursuant to follow-on offering, net of offering costs (in shares)             13,269          
Issuance of Class A common stock sold pursuant to follow-on offering, net of offering costs 330,081 330,081                    
Tax impacts of follow-on offering 46,594 46,594                    
Ending balance (in shares) at Dec. 31, 2023             69,958   60,629   35,864 10,669
Ending balance at Dec. 31, 2023 675,921 379,391 544 (15,592) 311,576   $ 1   $ 1   $ 0 $ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Net income 66,450     35,258 31,192              
Unrealized gain (loss) on derivative securities, effective portion, net of income tax impacts (339) (338) 84   (85)              
Equity-based compensation expense 11,482 6,980     4,502              
Issuance of Class A common stock pursuant to vesting of equity awards, net of stock withheld for tax withholding obligations (in shares)             83          
Issuance of Class A common stock pursuant to vesting of equity awards, net of stock withheld for tax withholding obligations (1,069) 1,743     (2,812)              
Issuance of Class A common stock, in exchange for surrender and cancellation of Class D common stock, and conversion of Dutch Bros OpCo Class A common units for surrender and cancellation of Class C common stock, pursuant to exchange transactions (in shares)             45,391   (2,402)   (32,319) (10,669)
Effect of equity transactions of Dutch Bros OpCo Class A common units   115,989     (115,989)              
Impacts of Tax Receivable Agreements 12,921 12,921                    
Distributions paid to non-controlling interest holders (1,888)       (1,888)              
Tax impacts of other equity-related transactions 388 388                    
Class B common stock decoupled from Dutch Bros OpCo Class A common units, surrendered and cancelled (in shares)                 (23,000)      
Class B common stock decoupled from Dutch Bros OpCo Class A common units, surrendered and cancelled (1)               $ (1)      
Issuance of Class A common stock sold pursuant to follow-on offering, net of offering costs (in shares)           45,400            
Ending balance (in shares) at Dec. 31, 2024           115,432 115,432 35,227 35,227 3,545 3,545 0
Ending balance at Dec. 31, 2024 763,865 517,074 628 19,666 226,496   $ 1   $ 0   $ 0 $ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Net income 117,275     79,842 37,433              
Unrealized gain (loss) on derivative securities, effective portion, net of income tax impacts (1,059) (108) (580)   (371)              
Equity-based compensation expense 18,022 12,794     5,228              
Issuance of Class A common stock pursuant to vesting of equity awards, net of stock withheld for tax withholding obligations (in shares)             358          
Issuance of Class A common stock pursuant to vesting of equity awards, net of stock withheld for tax withholding obligations (12,525) (8,850)     (3,675)              
Issuance of Class A common stock, in exchange for surrender and cancellation of Class D common stock, and conversion of Dutch Bros OpCo Class A common units for surrender and cancellation of Class C common stock, pursuant to exchange transactions (in shares)             11,264       (1,264)  
Effect of equity transactions of Dutch Bros OpCo Class A common units 0 41,193     (41,193)              
Impacts of Tax Receivable Agreements 19,158 19,158                    
Reverse Split transaction pursuant to OpCo Recapitalization (in shares)                 (16)   (1)  
Distributions paid to non-controlling interest holders (6,867)       (6,867)              
Issuance of Class A common stock sold pursuant to follow-on offering, net of offering costs (in shares)           11,300            
Ending balance (in shares) at Dec. 31, 2025           127,054 127,054 35,211 35,211 2,280 2,280  
Ending balance at Dec. 31, 2025 $ 897,869 $ 581,261 $ 48 $ 99,508 $ 217,051   $ 1   $ 0   $ 0  
v3.25.4
Consolidated Statements of Stockholders’ Equity (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Stockholders' Equity [Abstract]      
Unrealized (loss) gain on derivative securities, effective portion, net of income tax (benefit) expense $ (224) $ (83) $ 10
v3.25.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash flows from operating activities:      
Net income $ 117,275 $ 66,450 $ 9,952
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 115,133 93,005 69,135
Non-cash interest expense 824 1,113 887
Non-cash donation expense 0 1,811 0
(Gain) loss on disposal of assets 300 (1,277) (23)
Loss on extinguishment of debt 809 0 0
Equity-based compensation 18,022 11,482 39,222
Deferred income taxes 17,617 15,421 5,946
Remeasurement gain on TRAs (4,767) (4,247) (2,638)
Non-cash operating lease cost 20,666 15,765 11,413
Changes in operating assets and liabilities:      
Accounts receivable, net (7,789) (1,474) 2,842
Inventories, net (12,429) 10,465 (7,724)
Prepaid expenses and other current assets (3,656) (2,282) (4,775)
Other long-term assets (1,961) 611 (578)
Accounts payable 3,706 3,658 3,903
Other current liabilities 20,426 29,618 15,921
Deferred revenue 13,693 13,858 5,571
Other long-term liabilities (8) 0 0
Operating lease liabilities (2,316) (7,545) (9,139)
Net cash provided by operating activities 295,545 246,432 139,915
Cash flows from investing activities:      
Purchases of property and equipment (241,134) (221,738) (228,457)
Proceeds from disposal of property and equipment 66 9,666 1,177
Net cash used in investing activities (241,068) (212,072) (227,280)
Cash flows from financing activities:      
Proceeds from line of credit 0 2,449 90,000
Payments on line of credit 0 (2,449) (202,705)
Payments on finance lease liabilities (16,105) (10,541) (12,432)
Proceeds from long-term debt 250,000 150,000 1,647
Payments on long-term debt (286,685) (11,053) (2,613)
Payments of debt issuance costs (1,547) 0 (1,350)
Proceeds from equity offering, net of underwriting discounts and commissions 0 0 331,200
Payment of deferred offering costs 0 0 (1,119)
Tax withholding payments upon vesting of equity awards (12,525) (1,069) (1,896)
Distributions to non-controlling interest holders (6,867) (1,888) 0
Payments under tax receivable agreements (4,698) 0 0
Net cash provided by (used in) financing activities (78,427) 125,449 200,732
Net increase (decrease) in cash and cash equivalents (23,950) 159,809 113,367
Cash and cash equivalents, beginning of period 293,354 133,545 20,178
Cash and cash equivalents, end of period 269,404 293,354 133,545
Supplemental disclosure of cash flow information      
Interest paid 38,973 39,103 34,969
Income taxes paid 996 2,253 1,731
Supplemental disclosure of noncash investing and financing activities      
Additions of property and equipment recorded as liabilities as of end of period $ 10,804 $ 12,635 $ 13,880
v3.25.4
Organization and Background
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Background
NOTE 1 — Organization and Background
Business
Dutch Bros Inc., a Delaware corporation, together with its subsidiaries (the Company, we, us, or our, collectively) operates and franchises drive-thru shops as well as sells and distributes coffee, coffee-related products, and accessories. As of December 31, 2025, there were 1,136 shops in operation in 25 U.S. states, of which 811 were company-operated and 325 were franchised.
Organization
Dutch Bros Inc. is the sole managing member of Dutch Bros OpCo and operates and controls all of the business and affairs of Dutch Bros OpCo. As a result, Dutch Bros Inc. consolidates the financial results of Dutch Bros OpCo and reports a non-controlling interest representing the economic interest in Dutch Bros OpCo held by the other members of Dutch Bros OpCo. The Company’s fiscal year end is December 31. As of December 31, 2025, Dutch Bros Inc. held 100.0% of the voting interest and 71.6% of the economic interest of Dutch Bros OpCo. The Continuing Members held no voting interest and the remaining 28.4% of the economic interest of Dutch Bros OpCo.
Dutch Bros OpCo Recapitalization
From time to time, Dutch Bros Inc. receives cash distributions from Dutch Bros OpCo pursuant to the OpCo LLC Agreement. Dutch Bros Inc. may then loan any cash in excess of its liabilities back to Dutch Bros OpCo for operations, under the open-ended balance Subordinated Intercompany Note, between Dutch Bros OpCo and Dutch Bros Inc., dated February 28, 2022 (the Intercompany Note).
On February 7, 2025, Dutch Bros Inc. entered into a subscription agreement with Dutch Bros OpCo, pursuant to which Dutch Bros OpCo issued 51,942 newly authorized Dutch Bros OpCo Class A common units to Dutch Bros Inc. in exchange for satisfaction of the outstanding balance of the Intercompany Note, which at that time was approximately $3.5 million.
In accordance with the OpCo LLC Agreement, all outstanding Dutch Bros OpCo Class A common units were then recapitalized through a reverse unit split (the Reverse Split) in order to maintain a one-to-one ratio between the number of Dutch Bros OpCo Class A common units owned by Dutch Bros Inc. and the number of outstanding shares of Class A common stock. Consequently, 15,734 outstanding shares of Class B common stock, and 1,220 outstanding shares of Class C common stock, that were paired with Dutch Bros OpCo Class A common units eliminated as a result of the Reverse Split, were cancelled.
During 2025, in connection with various equity-related transactions by our Sponsor and Co-Founder, the Company issued approximately 11.3 million shares of Class A common stock in exchange for the cancellation of approximately 1.3 million shares of Class C common stock and conversion of approximately 11.3 million Dutch Bros OpCo Class A common units on a one-for-one basis. These transactions in total increased the Company’s interest in Dutch Bros OpCo to 71.6% as of December 31, 2025.
During 2024, in connection with various equity-related transactions by our Sponsor and Co-Founder, the Company issued approximately 45.4 million shares of Class A common stock in exchange for approximately 10.7 million shares of Class D common stock and conversion of approximately 34.7 million Dutch Bros OpCo Class A common units on a one-for-one basis.
Further, in May 2024, pursuant to a share surrender agreement, among the Company, Dutch Bros OpCo, and our Co-Founder, our Co-Founder surrendered 23 million shares of Class B common stock, and the shares were cancelled by the Company. The surrender and cancellation of these shares had no impact on the economic interest in Dutch Bros OpCo held by our Co-Founder.
v3.25.4
Basis of Presentation and Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Basis of Presentation and Summary of Significant Accounting Policies
NOTE 2 — Basis of Presentation and Summary of Significant Accounting Policies
Financial Statements Presentation
Our consolidated financial statements as of December 31, 2025 and for the three years then ended have been prepared in accordance with GAAP and pursuant to the rules and regulations of the SEC
Reclassifications
As of December 31, 2025, the following reclassifications were made to the prior year balance sheet presentation to better reflect the nature of the assets and liabilities:
•Goodwill and Intangibles, net were consolidated into Other long-term assets. See NOTE 7 — Other Long-Term Assets for additional details.
•Operating and finance lease right-of-use assets are presented within Lease right-of-use assets, net, and the related lease liabilities are presented within Current portion of lease liabilities and Lease liabilities, net of current portion, on the Consolidated Balance Sheets. See NOTE 8 — Leases for additional details.
•The separate balance sheet line items of Accrued compensation and benefits, Other accrued liabilities and Other current liabilities have been combined into a single line item titled Other current liabilities. See NOTE 5 — Supplemental Financial Information for additional details.
Principles of Consolidation
The consolidated financial statements include the accounts of our Company and subsidiaries that we control due to ownership of a majority voting interest or pursuant to accounting guidance for non-controlling interests. All intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates
The presentation of consolidated financial statements in conformity with GAAP requires that we make estimates and assumptions, primarily related to long-lived asset valuation, leases, deferred revenue, tax receivable agreements, income taxes, and equity-based compensation that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Although we base our estimates on historical experience and assumptions that are believed to be reasonable under the circumstances, actual results could differ from those estimates.
Cash and Cash Equivalents
Cash and cash equivalents include all short-term highly liquid instruments with original maturities of three months or less at the time of purchase, as well as credit card receivables for sales to customers in company-operated shops that generally settle within two to five business days. Our cash accounts are maintained at various high credit quality financial institutions and may exceed federally insured limits. We have not experienced any losses in such accounts.
Fair Value Measurements
We apply fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in our consolidated financial statements. We categorize assets and liabilities, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy as set forth below. The three levels of the hierarchy are defined as follows:
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2 – Observable inputs other than quoted prices in active markets for identical assets or liabilities, quoted prices for identical assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 – Inputs that are both unobservable and significant to the overall fair value measurements reflecting an entity's estimates of assumptions that market participants would use in pricing the asset or liability.
Our consolidated balance sheets include cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, and other current liabilities, for which the carrying amounts approximate fair value due to their short-term maturity. The fair value of our variable-rate credit facilities approximate their carrying amounts as the cost of borrowing is variable and approximates current market prices, which is considered Level 2 in the fair value hierarchy.
Derivative Instruments
We manage exposure to fluctuations in interest rates within our consolidated financial statements according to a hedging policy. Under this policy, we may from time to time enter into interest rate swap agreements to fix a portion of interest expense and hedge interest rate risk. A swap agreement is a contract between two parties to exchange cash flows based on specified underlying notional amounts, assets and/or indices. We do not enter into derivative instruments for speculative purposes or for any other purpose other than to manage its risks related to fluctuations in interest rates.
By using swap instruments, we are exposed to potential credit risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. We minimize this credit risk by entering into transactions with carefully selected, credit-worthy counterparties.
Cash Flow Hedges
Cash flow hedges related to anticipated transactions are designated and documented at the inception of each hedge. Cash flows from hedging transactions are classified in the same categories as the cash flows from the respective hedged items.
For derivative instruments that are designated and qualify as a cash flow hedge, the derivative's gain or loss is reported as a component of other comprehensive income and recorded in accumulated other comprehensive income on the Company’s consolidated balance sheets. The gain or loss is subsequently reclassified into net earnings when the hedged exposure affects net earnings, in the same line item as the underlying hedged item on our consolidated statements of operations.
We may discontinue hedge accounting when:
•it is determined that the cash flow derivative is no longer effective in offsetting changes in the cash flows of a hedged item;
•the derivative expires or is sold, terminated or exercised;
•it is no longer probable that the forecasted transaction will occur; or
•management determines that designation of the derivatives as a hedge instrument is no longer appropriate.
Refer to NOTE 10 — Derivative Financial Instrument for further discussion of the Company’s derivative instruments.
Accounts Receivable
Accounts receivable, net of allowance for credit losses, consist primarily of royalty revenues, outstanding balances for sales of roasted coffee beans, Dutch Bros Rebel, retail gift cards, other retail-related supplies to franchisees, and vendor rebates. The allowance for credit losses is estimated based on our historical losses adjusted for current, reasonable and supportable forecasts of economic conditions and other pertinent factors affecting our customers and vendors, including review of specific accounts, financial stability and credit worthiness. Accounts receivable are charged off against the allowance for credit losses when the financial condition of our customers and vendors is adversely affected and they are unable to meet their financial obligations. We had no allowance for credit losses at December 31, 2025 and 2024.
Inventories
Inventories, net consist primarily of roasted and unroasted coffee beans, Dutch Bros Rebel, and other retail related supplies. Inventories are stated at the lower of cost or net realizable value, with cost being determined on a first-in, first-out basis. We record product returns as they are received, and obsolete and slow-moving inventory when identified, as these types of transactions have generally been immaterial to our historical operations.
Property and Equipment
Property and equipment, net are stated at cost less accumulated depreciation. Expenditures for maintenance, repairs, and routine replacements are charged to expense as incurred. Expenditures for major repairs and improvements that extend the useful lives of property and equipment are capitalized. When property or equipment is sold or otherwise disposed of, the asset and related accumulated depreciation are removed from the balance sheet and any gain or loss is included in income from operations in the accompanying consolidated statements of operations. Depreciation is computed on a straight-line basis over the following useful lives:
(in years)
Estimated Useful Life
Software
3
Equipment and fixtures
3 - 7
Leasehold improvements
5 - 15 1
Buildings
10 - 39
_________________
1    Lesser of lease term or useful life
We capitalize costs associated with the acquisition or development of major software for internal use and amortize the assets over the expected life of the software, generally 3 years. We only capitalize subsequent additions, modifications, or upgrades to internal-use software to the extent that such changes allow the software to perform a task it previously did not perform. Software maintenance and training costs are expensed as incurred.
Leases
We lease our company-operated shops, warehouse facilities, headquarters buildings, and certain equipment under non-cancelable lease agreements that expire on various dates through 2050. Our real estate leases consist of build-to-suit and commercial ground leases with typical initial terms of 15 or 20 years, respectively and include one to three renewal periods of five-years each. Renewals are included in the lease term when it is reasonably certain that the renewal period will be exercised. We recognize a right-of-use asset and lease liability for each lease with a contractual term of greater than 12 months at lease inception, and have elected not to recognize leases with terms of 12 months or less.
We calculate right-of-use assets and lease liabilities based on the present value of the fixed minimum lease payments, including any estimated lease incentives, at lease commencement using an estimated incremental borrowing rate corresponding to the lease term and applied on a portfolio basis. We’ve elected not to separate lease and non-lease components on real estate leases.
Lease classification is determined as operating or finance at lease commencement, and expense recognition occurs over the lease term from the date we take possession of the property. For operating leases, expense is recognized on a straight-line basis; for finance leases, expense is recognized on an accelerated basis. We record lease expense in cost of sales and selling, general and administrative expense on our consolidated statements of operations. Variable lease costs are expensed as incurred and recognized in cost of sales on the consolidated statements of operations.
From time to time we may have sale and leaseback transactions that do not qualify for sale-leaseback accounting because of our deemed continuing involvement. Additionally, we may procure a building related to an acquired lease in an asset acquisition. Both of these types of transactions are recorded under the financing method. These financing obligations are included in long-term debt on our consolidated balance sheets.
For additional information, see NOTE 8 — Leases and NOTE 9 — Debt to the consolidated financial statements.
Goodwill
Recoverability of goodwill is reviewed by reporting unit at least annually, as of the beginning of our fourth fiscal quarter, and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The annual impairment test includes an option to perform a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying value; the qualitative test may be performed prior to, or as an alternative to, performing a quantitative goodwill impairment test. If, after assessing the totality of events or circumstances, it is determined that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value, we are required to perform the quantitative goodwill impairment test. Otherwise, no further analysis is required. We performed the annual qualitative impairment assessments for each of the three years in the period ended December 31, 2025, and no impairment charges were recognized, nor were there any accumulated impairment losses.
Impairment of Long-Lived Assets
Long-lived assets are reviewed for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. The assessment of recoverability of property and equipment and finite-lived intangible assets is performed at the component level, which is generally an individual shop, and requires judgment and an estimate of future undiscounted shop-generated cash flows. Estimates of fair values are based on the best information available and require the use of estimates, judgments, and projections. We test for recoverability by comparing the carrying value of the asset to the undiscounted cash flows. If the carrying value is not recoverable, we would recognize an impairment loss if the carrying value of the asset exceeds the fair value. We performed the annual assessments for each of the three years in the period ended December 31, 2025, and no impairment charges were recognized, nor were there any accumulated impairment losses.
Revenue Recognition
Consolidated revenues are recognized net of any discounts, returns, allowances and sales incentives.
Company-operated Shops Revenue
Retail sales from company-operated shops are recognized at the point in time when the products are sold to the customers. We report revenues net of sales taxes collected from customers and remitted to government taxing authorities.
Loyalty Program
The Company operates Dutch Pass, our digital loyalty program accessible via mobile app, which provides customers the opportunity to collect points based on purchases. Points can be redeemed for rewards which include free drinks. Additionally, customers can receive birthday and other promotional awards within Dutch Pass.
Points earned and not redeemed for rewards within 180 days automatically expire, and rewards that are not used within 180 days of issuance automatically expire. Separately, birthday and other promotional awards generally automatically expire after 30 days, depending on the specific award.
We defer revenue based on the estimated value of beverages for which the points, rewards, and awards are expected to be redeemed. Based on historical expiration rates, a portion of points, rewards, and awards are not expected to be redeemed and are recognized as breakage.
Gift Card Program
We maintain a contract liability for physical gift cards sold at Company-owned shops, digital gift cards, and retail gift cards purchased at third party retails stores, recognizing revenue when a gift card is redeemed. Gift cards do not have an expiration date or a service fee causing a decrement to the customer balance. Program costs related to retail gift cards sales are deferred and recognized in selling general and administrative expenses in the period in which the gift cards are redeemed. Based on historical redemptions rates, a portion of gift cards are not expected to be redeemed and are recognized as breakage. Our breakage income is not material.
Franchising Revenue
Franchise royalty fees are generally computed as a percentage of net franchise sales and are charged for continuing support of franchisees for various services provided by us. These services are highly interrelated, and as such are accounted for as a single performance obligation.
Separately, we receive marketing fees from franchisees for promotion of the Dutch Bros brand. Contributions are based on a percentage of shop sales and marketing expenditures include payments to third parties and other costs. We determined our advertising and promotion management services do not represent individually distinct performance obligations and are included in the franchise performance obligation.
Initial and other deferred franchise fees are recorded as a contract liability, and revenue is recognized ratably over the term of the franchise agreement, which is generally ten years.
Other franchising revenue, including coffee bean sales, Dutch Bros Rebel energy drink sales, and other sales, are recognized when shipped.
Other Revenue
Other revenue includes retail coffee and other food and beverage sales, recognized at the date of sale, as well as sales of products through our website, recognized at the point in time of shipment to customers.
Deferred Revenue
Deferred revenue primarily consists of the unredeemed gift card liability and unredeemed points/rewards from our Dutch Rewards loyalty program. Deferred revenue also includes bean and beverage sales to distributors where the performance obligation has not yet been satisfied as control has not transferred to the customer.
Shop Pre-opening Expenses
Pre-opening expenses incurred with the opening of new company-operated shops are expensed as incurred. These costs include rent expense, wages, benefits, travel and lodging for the training and opening management teams, and beverage and other operating expenses incurred prior to a shop opening for business and are included in cost of sales.
Vendor Rebates
We have food and beverage supply agreements with certain major vendors. Per the terms of these arrangements, vendor rebates are provided to us based on the dollar value of purchases for systemwide shops. These rebates are recognized as earned throughout the year and are recorded as accounts receivable and a reduction to cost of sales.
Advertising Expense
Advertising costs are expensed as incurred. Company-operated shop advertising expenses are included within Cost of sales; company-wide promotions and initiatives are included within Selling, general and administrative expenses. See NOTE 5 — Supplemental Financial Information for additional details.
Equity-based Compensation
The Company granted time-based RSAs to certain officers and employees in connection with the IPO which, as of December 31, 2024, had each fully vested. Additionally, the Company grants time-based RSUs to directors and certain employees. These awards vest over a three-year service period with one-third of the award value vesting annually. The RSUs are accounted for as equity-classified awards, and are granted at the fair value of the underlying Class A common stock of Dutch Bros Inc. as of the grant date.
In 2025, the Company granted PSUs to a small group of senior management employees. The PSUs are subject to a three-year plus maximum 90-day service period and a market condition. The number of shares of Dutch Bros Inc.'s Class A common stock to be received at vesting range from 0% to 200% of the target amount. The payout percentage is based on TSR performance measured during a three-year performance period that commences on the grant date of any given award and ends three years from that date. TSR performance is measured based on Dutch Bros Inc.'s stock price appreciation compared to peer companies' stock price appreciation during the performance period. The PSUs are accounted for as equity-classified awards, valued upon grant using the Monte Carlo Simulation model.
Vesting of all awards granted are subject to the grantee’s continued service at Dutch Bros through the applicable vesting date. The cost of the Company’s equity awards is recognized as expense over the grantee’s requisite service period, and forfeitures are accounted for as they occur.
Tax Receivables Agreements
In connection with the IPO, the Company executed two TRAs which provide for payment by the Company to certain Dutch Bros OpCo owners of 85% of the benefits, if any, that the Company would be deemed to realize (calculated using certain assumptions) as a result of certain tax attributes and benefits covered by the TRAs.
The Company expects to obtain an increase in its share of the tax basis in the net assets of Dutch Bros OpCo when OpCo Units are exchanged by Pre-IPO Dutch Bros OpCo Unitholders. The Company treats any redemptions and exchanges of OpCo Units as direct purchases for U.S. federal income tax purposes. These increases in tax basis may reduce the amounts that it would otherwise pay in the future to various tax authorities. They may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets.
TRA-related liabilities are classified on the Company’s consolidated balance sheets as current or non-current assets based on the expected date of payment under the captions “Current portion of tax receivable agreements liability” and “Tax receivable agreements liability, net of current portion,” respectively.
Income Taxes
The Company is a corporation and sole managing member of Dutch Bros OpCo which is treated as a partnership for tax purposes.

The Company records income tax provision, deferred tax assets, deferred tax liabilities, uncertain tax positions, and valuation allowance, as applicable, only for the items for which the Company is responsible to the relevant tax authority.
Deferred income taxes result from temporary differences between the financial reporting and tax basis of assets and liabilities, and are measured using the enacted tax rates and laws expected to be in effect when such differences are expected to reverse. These temporary differences are reflected as deferred income tax assets, net on the consolidated balance sheets. A deferred tax asset is recognized if it is more likely than not that a tax benefit will be realized.
The Company recognizes tax benefits from entity-level uncertain tax positions if it is more likely than not that the tax position will be sustained on examination by the tax authorities, based on technical merits of the position. The tax benefit is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement.
Income Per Share
Basic income per share of Class A and Class D common stock is computed by dividing net income attributable to Dutch Bros Inc. by the weighted-average number of shares of Class A and Class D common stock outstanding during the period. Diluted income per share of Class A and Class D common stock is computed by dividing net income attributable to Dutch Bros Inc., adjusted for the assumed exchange of all potentially dilutive instruments for Class A common stock, by the weighted-average number of shares of Class A and Class D common stock outstanding, adjusted to give effect to potentially dilutive elements. Share counts used in the diluted income per share calculations are adjusted for the deemed repurchases provided for in the treasury stock method for RSAs, RSUs and PSUs, and under the if-converted method for the outstanding convertible Class B and Class C common stock, if dilutive.
As of June 2024, all Class D common shares were converted to Class A common shares.
Shares of the Company’s Class B and Class C common stock do not participate in the earnings or losses of the Company and are therefore not participating securities. As such, separate presentation of basic and diluted income (loss) per share of Class B and Class C common stock under the two-class method has not been presented.
Recently Issued Accounting Standards
In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The intent of this ASU is to address businesses’ shift from using prescriptive and sequential software development methods to using incremental and iterative development methods. The amendments in this ASU remove all references to prescriptive and sequential software development stages, and also provides criteria for when an entity is required to start capitalizing software costs. ASU 2025-06 is effective for all entities' annual reporting periods beginning after December 15, 2027, and interim periods within those annual reporting periods using a prospective transition, modified transition or retrospective transition approach. Early adoption is permitted as of the beginning of an annual reporting period. We are currently assessing potential impacts of this standard on our business processes and future disclosures.
In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40). The intent of this ASU is to improve public entity financial footnote disclosures around types of expenses in commonly presented expense categories (i.e., cost of sales; selling, general, and administrative expense; and research and development expense). The amendments in this ASU do not change or remove current expense disclosure requirements, but rather 1) impact where this information appears in the notes to the consolidated financial statements and 2) add additional disclosure requirements for certain expense line items appearing on the face of our consolidated statements of operations. ASU 2024-03, as amended, is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. We are currently assessing potential impacts of this standard on our business processes and future disclosures.
Recently Adopted Accounting Standards
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update are intended to enhance the transparency and decision usefulness of income tax disclosures, primarily through improvements to the rate reconciliation and income taxes paid information, specifically requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation, and (2) income taxes paid disaggregation by jurisdiction. We adopted ASU 2023-09 on a retrospective basis, and the standard has had no material impact on our consolidated financial statements. We have, however, provided additional detail and disclosures under the new guidance in NOTE 12 — Income Taxes.
v3.25.4
Revenue Recognition
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
NOTE 3 — Revenue Recognition
Revenue
The following table disaggregates revenue by major component:
Year Ended December 31,
(in thousands)202520242023
Company-operated shops$1,509,329 $1,165,830 $857,939 
Franchising122,046 109,610 101,907 
Other6,784 5,575 5,930 
Total revenues$1,638,159 $1,281,015 $965,776 
Deferred Revenue
Components of our deferred revenue liability are as follows:
(in thousands)December 31, 2025December 31, 2024
Gift card and loyalty programs
$62,014 $48,265 
Initial unearned franchise fees
2,562 2,618 
Total deferred revenue$64,576 $50,883 

Deferred revenue activity was as follows:
Year Ended December 31,
(in thousands)20252024
Beginning balance$50,883 $37,025 
Revenue deferred 1
567,005 419,107 
Revenue recognized 2
(553,256)(405,458)
Other deferred revenue, net
(56)209 
Ending balance64,576 50,883 
Less: current portion(55,658)(42,868)
Deferred revenue, net of current portion$8,918 $8,015 
_______________
1 Revenue deferred includes gift card activations, loyalty app cash loads and loyalty points and rewards earned.
2 Revenue recognized includes redemptions of gift cards, loyalty app and loyalty rewards redemptions, and breakage.
Revenue recognized during each of the three years in the period ended December 31, 2025, that was included in the respective deferred revenue liability balances at the beginning of the period, are shown below.
Year Ended December 31,
(in thousands)202520242023
Gift card redemptions 1
$8,072 $6,215 $5,149 
Earned franchise fees430 450 454 
_____________________
1    Amounts exclude cash loads and transactions related to our loyalty rewards program.
Future recognition of initial unearned franchise fees as of December 31, 2025 is as follows:
(in thousands)
2026427 
2027382 
2028333 
2029288 
2030256 
Thereafter876 
Total$2,562 
v3.25.4
Organization Realignment and Restructurings
 12 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
Organization Realignment and Restructurings
NOTE 4 — Organization Realignment and Restructurings
On January 29, 2024, our Board of Directors approved an organizational realignment and restructuring plan to expand support operations at our Phoenix, Arizona office. As part of this large-scale initiative, we relocated certain support center staff from our Grants Pass, Oregon headquarters to the Phoenix office. As of March 31, 2025, this initiative was substantially complete, including the build-out and move into our new Phoenix office location. We incurred total aggregate charges of approximately $19.1 million related to this initiative, consisting of (i) approximately $16.6 million in employee-related costs, including relocation, retention and transition costs, termination benefits, and duplicate transition wages and benefits; and (ii) approximately $2.5 million in other costs, including the donation of a building, consulting fees, and duplicate rent. Substantially all of the charges have resulted in current or expected future cash expenditures.
On May 13, 2025, our Board of Directors approved the plan for an additional restructuring program, primarily related to the relocation and streamlining of our remaining back-office operations from our former Grants Pass, Oregon headquarters to our newly-designated Phoenix office corporate headquarters. Affected employees were either offered an opportunity to relocate and continue employment in the Phoenix office or were offered a severance package; these communications were largely completed by May 20, 2025. During the year ended December 31, 2025, we incurred approximately $7.0 million in charges for this program and expect to incur total aggregate charges of approximately $9.0 million through completion, consisting of (i) employee-related costs, including relocation, retention and transition costs, termination benefits, and duplicate transition wages and benefits; and (ii) other costs, including consulting fees. As of December 31, 2025, substantially all of our headquarters employees have been relocated to our Phoenix office. We expect this program to be completed by the end of the second quarter of 2026.
During the years ended December 31, 2025 and 2024 we recorded restructuring charges for employee-related and other costs in selling, general and administrative expenses on the consolidated statements of operations as follows:
Year Ended December 31,
(in thousands)20252024
Relocation and travel costs
$3,288 $11,403 
Termination benefits
4,319 4,146 
Total employee-related costs
7,607 15,549 
Duplicate rent
244 461 
Consulting
387 55 
Total other costs631 2,327 
Total restructuring costs incurred$8,238 $17,876 
As of December 31, 2025 and 2024, the accruals for corporate restructuring costs are included in accounts payable, and other current liabilities on the consolidated balance sheets. The following table summarizes the activity for the restructuring liabilities during the year ended December 31, 2025:
(in thousands)December 31, 2024Charges
Cash Payments
December 31, 2025
Relocation and travel costs
$698 $3,288 $(3,818)$168 
Termination benefits
2,028 4,319 (4,400)1,947 
Total employee-related costs2,726 7,607 (8,218)2,115 
Duplicate rent
— 244 (244)— 
Consulting
55 387 (433)9 
Total other costs
55 631 (677)9 
Totals$2,781 $8,238 $(8,895)$2,124 
v3.25.4
Supplemental Financial Information
 12 Months Ended
Dec. 31, 2025
Supplemental Financial Information [Abstract]  
Supplemental Financial Information
NOTE 5 — Supplemental Financial Information
Inventories
Inventories, net consisted of the following:
(in thousands)December 31, 2025December 31, 2024
Raw materials$25,516 $14,594 
Finished goods23,401 21,894 
Total inventories$48,917 $36,488 
Other current liabilities
Other current liabilities consisted of the following:
(in thousands)December 31, 2025December 31, 2024
Accrued compensation and benefits
$50,314 $49,778 
Sales, use and property taxes payable
15,354 4,667 
Other accrued liabilities
33,505 28,916 
Other current liabilities
$99,173 $83,361 
Employee benefit plan contribution
Our 401(k) plan covers substantially all employees who meet certain requirements. Contributions to the 401(k) plan are determined by each participant by means of an elective compensation deferral, subject to annual limits. We match 100% of employee contributions, up to 4% of eligible compensation. The total employer matching contributions to the 401(k) plan recognized in our consolidated statements of operations were as follows:
Year Ended December 31,
(in thousands)202520242023
Cost of sales
$45 $62 $60 
Selling, general, and administrative expenses3,426 2,909 2,281 
Total employer matching contributions
$3,471 $2,971 $2,341 
Advertising expense
Advertising expenses consisted of the following for the periods presented:
Year Ended December 31,
(in thousands)202520242023
Cost of sales
$26,270 $21,897 $18,946 
Selling, general and administrative
12,752 17,313 10,953 
Total advertising expense
$39,022 $39,210 $29,899 
v3.25.4
Property and Equipment
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Property and Equipment
NOTE 6 — Property and Equipment
Property and equipment, net consisted of the following:
(dollars in thousands)
Useful Life (Years)
December 31, 2025December 31, 2024
Software3$14,630 $10,666 
Equipment and fixtures3—7305,116 229,307 
Leasehold improvements5—1568,023 54,535 
Buildings10—39616,299 487,060 
LandN/A7,022 7,022 
Construction-in-progress 1
 N/A
75,225 71,951 
Property and equipment, gross1,086,315 860,541 
Less: accumulated depreciation(261,813)(176,570)
Property and equipment, net$824,502 $683,971 
_______________
1    Construction-in-progress primarily consisted of construction and equipment costs for new and existing shops.
Depreciation expense included in our consolidated statements of operations was as follows:
Year Ended December 31,
(in thousands)202520242023
Cost of sales$82,850 $63,707 $42,807 
Selling, general, and administrative
3,339 1,229 1,634 
Total depreciation expense$86,189 $64,936 $44,441 
v3.25.4
Other Long-Term Assets
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Other Long-Term Assets
NOTE 7 — Other Long-Term Assets
The details of other long-term assets were as follows:
(dollars in thousands)
December 31, 2025December 31, 2024
Reacquired franchise rights1
$27,049 $27,049 
Less: accumulated amortization(25,539)(24,102)
Reacquired franchise rights, net
1,510 2,947 
Goodwill
21,629 21,629 
Other
2,385 2,592 
Total other long-term assets, net
$25,524 $27,168 
_______________
1 Weighted-average amortization periods (in years) were 2.93 and 2.94 for the years ended December 31, 2025 and 2024, respectively.
Amortization expense of reacquired franchise rights included in our consolidated statements of operations was as follows:
Year Ended December 31,
(in thousands)202520242023
Cost of sales$1,437 $2,468 $3,389 
The estimated future amortization expense of the reacquired franchise rights as of December 31, 2025 is as follows:
(in thousands)
2026682 
2027383 
2028247 
2029153 
203042 
Thereafter3 
Total $1,510 
v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases
NOTE 8 — Leases
A summary of finance and operating lease right-of-use assets and lease liabilities as of December 31, 2025 and December 31, 2024 is as follows:
(in thousands)Balance Sheet ClassificationDecember 31, 2025December 31, 2024
Right-of-use assets
Finance leases$406,381 $374,623 
Operating leases448,958 315,256 
Lease right-of-use assets, net$855,339 $689,879 
Lease liabilities
Current lease liabilities
Finance leases$17,298 $13,256 
Operating leases19,168 13,979 
Current portion of lease liabilities36,466 27,235 
Non-current lease liabilities
Finance leases402,697 369,297 
Operating leases449,683 309,311 
Lease liabilities, net of current portion852,380 678,608 
Total lease liabilities $888,846 $705,843 
The components of lease costs, excluding short-term lease costs and sublease income (both immaterial for the periods presented), were as follows:
Statements of Operations Classification
Year Ended December 31,
(in thousands)202520242023
Finance lease costs
Amortization of right-of-use assetsCost of sales$27,467 $25,551 $21,290 
Amortization of right-of-use assets
Selling, general, and administrative
40 50 15 
Interest on lease liabilitiesInterest expense23,289 22,053 17,516 
Total finance lease costs
50,796 47,654 38,821 
Operating lease costs
Lease expenses
Cost of sales40,829 28,703 19,385 
Lease expenses
Selling, general, and administrative
2,835 1,646 55 
Total operating lease costs
43,664 30,349 19,440 
Variable lease costs
Cost of sales9,652 6,874 5,216 
Total lease costs$104,112 $84,877 $63,477 
Future minimum lease payments for finance and operating lease liabilities as of December 31, 2025 are as follows:
(in thousands)FinanceOperating
2026$41,575 $35,367 
202740,644 46,409 
202841,786 45,965 
202942,715 46,706 
203043,118 47,384 
Thereafter431,664 544,593 
Total$641,502 $766,424 
Less: imputed interest(221,507)(297,573)
Present value of minimum lease payments419,995 468,851 
Less: current portion(17,298)(19,168)
Lease liabilities, net of current portion$402,697 $449,683 
A summary of lease terms and discount rates for finance and operating leases is as follows:
 December 31, 2025December 31, 2024
Weighted-average remaining lease term (years)
Finance leases14.515.3
Operating leases15.515.5
 
Weighted-average discount rate (percentages)
Finance leases6.0%6.0%
Operating leases6.3%5.9%
Supplemental cash flow information related to leases is as follows for the periods presented:
Year Ended December 31,
(in thousands)202520242023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases$23,289 $22,053 $17,516 
Operating cash flows from operating leases1
25,316 22,127 17,167 
Financing cash flows from finance leases16,105 10,541 12,432 
Right-of-use assets obtained in exchange for lease obligations
Finance leases53,547 15,838 144,588 
Operating leases148,332 130,059 40,253 
_______________
1 For the year ended December 31, 2025, the amount presented is net of a $5.4 million tenant improvement allowance received from the landlord related to our Arizona headquarters office lease.
Leases
NOTE 8 — Leases
A summary of finance and operating lease right-of-use assets and lease liabilities as of December 31, 2025 and December 31, 2024 is as follows:
(in thousands)Balance Sheet ClassificationDecember 31, 2025December 31, 2024
Right-of-use assets
Finance leases$406,381 $374,623 
Operating leases448,958 315,256 
Lease right-of-use assets, net$855,339 $689,879 
Lease liabilities
Current lease liabilities
Finance leases$17,298 $13,256 
Operating leases19,168 13,979 
Current portion of lease liabilities36,466 27,235 
Non-current lease liabilities
Finance leases402,697 369,297 
Operating leases449,683 309,311 
Lease liabilities, net of current portion852,380 678,608 
Total lease liabilities $888,846 $705,843 
The components of lease costs, excluding short-term lease costs and sublease income (both immaterial for the periods presented), were as follows:
Statements of Operations Classification
Year Ended December 31,
(in thousands)202520242023
Finance lease costs
Amortization of right-of-use assetsCost of sales$27,467 $25,551 $21,290 
Amortization of right-of-use assets
Selling, general, and administrative
40 50 15 
Interest on lease liabilitiesInterest expense23,289 22,053 17,516 
Total finance lease costs
50,796 47,654 38,821 
Operating lease costs
Lease expenses
Cost of sales40,829 28,703 19,385 
Lease expenses
Selling, general, and administrative
2,835 1,646 55 
Total operating lease costs
43,664 30,349 19,440 
Variable lease costs
Cost of sales9,652 6,874 5,216 
Total lease costs$104,112 $84,877 $63,477 
Future minimum lease payments for finance and operating lease liabilities as of December 31, 2025 are as follows:
(in thousands)FinanceOperating
2026$41,575 $35,367 
202740,644 46,409 
202841,786 45,965 
202942,715 46,706 
203043,118 47,384 
Thereafter431,664 544,593 
Total$641,502 $766,424 
Less: imputed interest(221,507)(297,573)
Present value of minimum lease payments419,995 468,851 
Less: current portion(17,298)(19,168)
Lease liabilities, net of current portion$402,697 $449,683 
A summary of lease terms and discount rates for finance and operating leases is as follows:
 December 31, 2025December 31, 2024
Weighted-average remaining lease term (years)
Finance leases14.515.3
Operating leases15.515.5
 
Weighted-average discount rate (percentages)
Finance leases6.0%6.0%
Operating leases6.3%5.9%
Supplemental cash flow information related to leases is as follows for the periods presented:
Year Ended December 31,
(in thousands)202520242023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases$23,289 $22,053 $17,516 
Operating cash flows from operating leases1
25,316 22,127 17,167 
Financing cash flows from finance leases16,105 10,541 12,432 
Right-of-use assets obtained in exchange for lease obligations
Finance leases53,547 15,838 144,588 
Operating leases148,332 130,059 40,253 
_______________
1 For the year ended December 31, 2025, the amount presented is net of a $5.4 million tenant improvement allowance received from the landlord related to our Arizona headquarters office lease.
v3.25.4
Debt
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Debt
NOTE 9 — Debt
Credit Facility
On May 29, 2025 (the Effective Date), we amended and restated our existing $650 million senior secured credit facility, dated February 28, 2022 (as previously amended, the 2022 Credit Facility), with JPMorgan Chase Bank, N.A. as administrative agent (Administrative Agent) and other financial institutions as the lenders party thereto (the 2025 Credit Facility). The 2025 Credit Facility consists of a $500 million revolving credit facility and a term loan facility of up to $150 million. The 2025 Credit Facility also includes sublimits for letters of credit and swingline loans of up to $100 million and $20 million, respectively. The 2025 Credit Facility expires on May 29, 2030 (the Maturity Date). It also contains an option allowing the Loan Parties to increase the size of the 2025 Credit Facility by up to an additional (i) $230 million or (ii) 80% of EBITDAR, whichever is greater, with the agreement of the Administrative Agent and the applicable lenders party thereto.
On the Effective Date, we drew the full $150 million in term loan and $50 million in revolving loans under the 2025 Credit Facility, and all outstanding debt under the 2022 Credit Facility was repaid. As a result of the amendment and restatement, we recognized a loss on debt extinguishment of approximately $2.0 million, comprised of: (i) approximately $1.2 million of fees to intermediaries and other costs related to the 2025 Credit Facility, and (ii) the write-off of approximately $0.8 million unamortized loan costs related to the 2022 Credit Facility. These expenses were recognized in Other income (expense), net on our consolidated statements of operations. In addition, we capitalized approximately $1.5 million of debt issuance costs related to the 2025 Credit Facility in Long-term debt, net of current portion on our consolidated balance sheets.
Interest on borrowings under the 2025 Credit Facility is based on (i) the Alternate Base Rate plus an applicable margin, or (ii) the Term SOFR Rate plus an applicable margin (each as defined in the 2025 Credit Facility), and is payable in accordance with the selected interest rate period and upon maturity. Principal payments for the term loans are required on a quarterly basis in accordance with an amortization schedule up through and including the Maturity Date.
We are required to pay a commitment fee on a quarterly basis, at a per annum rate of between 0.20% and 0.45%, depending on the Net Lease-Adjusted Total Leverage Ratio (as defined in the 2025 Credit Facility), based on the average daily unused portion of the revolving credit facility. These fees are recorded as interest expense on our consolidated statements of operations.
The 2025 Credit Facility contains financial covenants that require us to not exceed a maximum Net Lease-Adjusted Total Leverage Ratio and maintain a minimum Coverage Ratio (as defined in the 2025 Credit Facility). The 2025 Credit Facility also contains certain negative covenants that, among other things, restrict our ability to incur additional debt, grant liens on assets, merge with or acquire other companies, make other investments, dispose of assets, and make restricted payments. Obligations under the 2025 Credit Facility are guaranteed by Dutch Bros OpCo and its subsidiaries, and secured by a first priority perfected security interest in substantially all of the assets of the guarantors.
As of December 31, 2025, $50.0 million was outstanding on our revolving credit facility, and $435.8 million was available for borrowing, net of $14.2 million in letters of credit, and approximately $148.1 million of principal was outstanding on the term loan facility. The revolving loan and term loan both bear interest at approximately 5.22% as of December 31, 2025, excluding any impacts from our interest rate swap. We were in compliance with our financial covenants as of that date.
Long-Term Debt
Our long-term debt consisted of the following for the periods presented:
(in thousands)December 31, 2025December 31, 2024
Term loan under credit facility
$148,125 $234,688 
Revolving loan under credit facility
50,000 — 
Finance obligations1
4,162 3,022 
Unsecured note payable176 299 
Total debt202,463 238,009 
Less: loan origination fees(2,287)(943)
Less: current portion(3,881)(17,311)
Total long-term debt, net of current portion$196,295 $219,755 
_______________
1    Represents failed sale-leaseback arrangements, and also in 2025, a consideration payable associated with acquired leases
Future annual maturities of long-term debt as of December 31, 2025 are as follows:
(in thousands)
2026

3,881 
2027

5,670 
2028

7,500 
2029

11,250 
2030170,000 
Thereafter

4,162 
Total$202,463 
v3.25.4
Derivative Financial Instrument
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instrument
NOTE 10 — Derivative Financial Instrument
We have a receive-variable (Receive Leg), pay-fixed (Pay Leg) interest rate swap with JPMorgan Chase Bank, N.A. As of December 31, 2025, the interest rate swap had a notional amount of approximately $59.1 million and hedges interest rate risk on the term loan under the 2025 Credit Facility. The interest rate swap matures on February 28, 2027, and has a fixed rate of 2.67% per annum for the Pay Leg. The variable rate on the Receive Leg of the interest rate swap is the one-month adjusted term SOFR plus an applicable margin. As of December 31, 2025, the one-month adjusted term SOFR was 3.72%.
Our interest rate swap has been designated as a cash flow hedge, and as such, we record the change in fair value for the effective portion of the interest rate swap in AOCI rather than in current period earnings until the underlying hedged transaction affects earnings. As of December 31, 2025, we expect to reclassify a gain of approximately $0.5 million from AOCI to earnings within the next twelve months.
Designated as a Level 2 instrument within the fair value hierarchy, the fair value and effect of the derivative instrument included in our consolidated financial statements was as follows:
(in thousands)
Balance Sheets Classification
December 31, 2025December 31, 2024
Derivative instrument designated as cash flow hedge
Interest rate swap contractPrepaid expenses and other current assets$466 $953 
Interest rate swap contractOther long-term assets36 832 
Total derivative instrument designated as cash flow hedge$502 $1,785 
Year Ended December 31,
(in thousands)Financial Statements Classification202520242023
Derivative instrument designated as cash flow hedge
Income (loss) recognized in other comprehensive income before reclassifications
Statements of Comprehensive Income
$(112)$1,661 $954 
Reclassification from accumulated other comprehensive income to earnings for the effective portion
Statements of Operations - Interest expense, net
(1,063)(1,745)(1,692)
Income tax benefit (expense)
Statements of Operations - Income tax expense
224 83 (10)
The amendment to our credit facility, as discussed in NOTE 9 — Debt, had no impact on our interest rate swap derivative.
v3.25.4
Tax Receivable Agreements
 12 Months Ended
Dec. 31, 2025
Other Liabilities Disclosure [Abstract]  
Tax Receivable Agreements
NOTE 11 — Tax Receivable Agreements
The changes related to our TRAs liability were as follows:
(in thousands)December 31, 2025December 31, 2024
Beginning balance
$627,834 $290,920 
Additions (reductions) to TRAs:
Exchange of Dutch Bros OpCo Class A common units for Class A common stock202,680 341,161 
TRAs payments
(4,698)— 
TRAs remeasurements 1
(4,767)(4,247)
Ending balance
$821,049 $627,834 
Less: current portion(7,696)(71)
TRAs liability, net of current portion
$813,353 $627,763 
_________________
1 Impact primarily related to state tax rates and adjustments from previous estimates upon finalization of the tax attributes subject to the TRA.
v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes
NOTE 12 — Income Taxes
Our income before income taxes is domestic-sourced only, and was as follows for the periods presented:
Year Ended December 31,
(in thousands)202520242023
Income before income taxes
$135,623 $84,885 $16,919 
Our income tax expense consisted of the following:
Year Ended December 31,
(in thousands)202520242023
Current income taxes
Federal$200 $396 $193 
State and local
530 2,653 844 
Total current income taxes
730 3,049 1,037 
Deferred tax expense
Federal13,391 8,520 1,605 
State and local
4,227 6,866 4,325 
Total deferred income taxes
17,618 15,386 5,930 
Income tax expense
$18,348 $18,435 $6,967 
Our effective income tax rate differs from the U.S. federal statutory income tax rate as itemized below:
Year Ended December 31,
202520242023
(dollars in thousands)
$
%
$
%
$
%
U.S. federal statutory income tax rate28,481 21.0 17,826 21.0 3,553 21.0 
Domestic state and local income taxes, net of federal effect 1
4,749 3.5 9,497 11.2 4,245 25.1 
Domestic federal:
Tax credits:
Tip credit(6,415)(4.7)(4,258)(5.0)(2,040)(12.1)
Other(243)(0.2)(149)(0.2)(138)(0.8)
Nontaxable and nondeductible items:
Income allocable to non-controlling interests not subject to tax(8,108)(6.0)(6,950)(8.2)(1,944)(11.5)
Stock compensation - (windfall) shortfall(3,267)(2.4)257 0.3 644 3.8 
Stock compensation - RSAs— — 40 — 2,385 14.1 
Section 162(m) compensation limitation1,461 1.1 — — 122 0.7 
TRA remeasurement(1,001)(0.7)(892)(1.0)(556)(3.3)
Tip credit addback1,380 1.0 884 1.0 423 2.5 
Other271 0.2 913 1.1 249 1.5 
Changes in valuation allowance
1,247 0.9 (157)(0.2)(57)(0.3)
Impact of TRA adjustments
359 0.2 965 1.2 (15)(0.1)
Other
(566)(0.4)459 0.5 96 0.6 
Total
18,348 13.5 18,435 21.7 6,967 41.2 
_________________
1 For the years ended December 31, 2025, 2024 and 2023, domestic state and local income taxes, net of federal effect primarily relate to the state of Oregon.

Our income taxes paid (net of refunds) consisted of the following:
Year Ended December 31,
(in thousands)202520242023
U.S. federal$54 $370 $239 
U.S. state and local total
943 1,884 1,492 
Total$996 $2,253 $1,731 
Income taxes paid (net of refunds) exceeded five percent of total income taxes paid (net of refunds) in the following jurisdictions:
Year Ended December 31,
(in thousands)202520242023
Tennessee*$1,276 *
Oregon545 263 773 
Texas393 217 395 
_________________
* Jurisdiction did not exceed the 5% threshold in the period presented.
The components of our deferred tax assets are as follows1:
(in thousands)December 31, 2025December 31, 2024
Deferred tax assets
Investment in Dutch Bros OpCo
$833,598 $678,358 
Net operating loss carryforwards94,290 50,862 
Credit carryforwards16,056 9,399 
Charitable contribution carryforward3,030 1,505 
Other1,825 2,865 
Total deferred tax assets948,799 742,989 
Less: valuation allowance(2,228)(863)
Net deferred tax assets$946,571 $742,126 
_________________
1 Certain prior year balances have been reclassified to conform with current year presentation.
We recognize deferred tax assets to the extent, based on available evidence, that it is more-likely-than-not that they will be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and recent results of operations. For the years ended December 31, 2025 and 2024, we recorded a valuation allowance on our deferred tax assets, primarily related to charitable contributions, of which we do not expect to recognize benefit from in the foreseeable future. We have no deferred tax liabilities.
During 2025, in connection with our Tax Receivable Agreements, deferred tax assets associated with our investment in Dutch Bros OpCo increased $221.7 million due to the exchange of approximately 11.3 million units of our Class A common units for Class A common stock. In addition, during 2025 the TRA liability increased $202.7 million as a result of these exchanges. See NOTE 11 — Tax Receivable Agreements for additional details.
As of December 31, 2025, we had U.S. federal net operating losses of $386.9 million and tax credit carryforwards of approximately $16.1 million. Our federal net operating losses do not expire and tax credits will begin to expire in 2038, if not utilized. As of December 31, 2025, we had $248.4 million of state tax net operating losses and no state tax credits. Of the state tax net operating losses, $176.6 million will begin to expire in 2033 if not utilized and the remaining $71.8 million do not expire.
Utilization of net operating losses, credit carryforwards, and certain deductions may be subject to a substantial annual limitation due to ownership change limitations provided by the Internal Revenue Code of 1986, as amended, and similar state provisions. The tax benefits related to future utilization of federal and state net operating losses, tax credit carryforwards, and other deferred tax assets may be limited or lost if cumulative changes in ownership exceeds 50% within any three-year period. Additional limitations on the use of these tax attributes could occur in the event of possible disputes arising in examinations from various taxing authorities.
There were no interest and penalties accrued for the three years ended December 31, 2025. We have assessed our tax positions taken and concluded there are no significant uncertain tax positions. We have no unrecognized tax benefits as of December 31, 2025 or 2024, that, if recognized, would affect the amount of income tax expense reported.
We file returns with the Internal Revenue Service and multiple state jurisdictions, which are subject to examination by the taxing authorities for years 2019 and later. The earlier tax years are subject to examination due to the utilization of net operating losses in recent tax years. None of our federal or state income tax returns are currently under examination by federal or state taxing authorities.
On July 4, 2025, the legislation commonly referred to as the One Big Beautiful Bill Act (OBBBA) was enacted in the United States. The OBBBA includes several significant changes in the U.S. tax law, including the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act and the restoration of favorable tax treatment for specific business provisions. This legislation was enacted during the third quarter of 2025, resulting in an increase to our valuation allowance related to the realizability of our charitable contributions carryforward. Other than the permanent extension of bonus depreciation provisions in the OBBBA, which will lower near term cash distributions to the members of Dutch Bros OpCo (including Dutch Bros Inc.), we do not expect the effects of this legislation to have a material impact on the Company’s financial results.
v3.25.4
Equity-Based Compensation
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Equity-Based Compensation
NOTE 13 — Equity-Based Compensation
Equity Awards
As of December 31, 2025, we had equity-based compensation awards outstanding consisting of RSUs and PSUs with three years service vesting periods. Awards currently outstanding vest under one of the following schedules:
•Approximately one-third installments on each first, second, and third anniversary of the vesting commencement date;
•50% each of the second and third anniversaries of the vesting commencement date; or
•100% vesting after completion of three years service period with maximum 90-day determination period.
We estimate the fair value of PSUs using a Monte Carlo simulation model at the grant date. The estimated grant date fair value of $132.96 was derived from inputs and assumptions utilized in the valuation model as follows:
Year Ended December 31,
20252024
Grant date stock price
$82.03 
N/A
Beginning average price1
$67.71 
N/A
Risk-free interest rate
4.2 %
N/A
Volatility
63.1 %
N/A
_________________
1 Beginning average price is calculated as the volume-weighted average daily closing stock price over the 30 trading days preceding the start of the PSU performance period.
Restricted and Performance Stock Units
RSU activity was as follows:
(in thousands, except per share amounts)Restricted Stock UnitsWeighted-average grant date fair value per share
Balance, December 31, 20241,211 $32.38 
New grants345 75.16 
Vested(521)34.71 
Forfeitures(193)40.74 
Balance, December 31, 2025842 $46.55 
PSU activity was as follows:
(in thousands, except per share amounts)Performance - Based Stock UnitsWeighted-average grant date fair value per share
Balance, December 31, 2024— $— 
New grants63 132.96 
Forfeitures(8)132.96 
Balance, December 31, 202555 $132.96 
Total release date fair value of vested equity awards for each of the three years in the period ended December 31, 2025 are presented below:
Year Ended December 31,
(in thousands, except per share amounts)202520242023
Awards/unitsW/A vest date fair valueAwards/unitsW/A vest date fair valueAwards/unitsWA vest date fair value
RSAs— $— 39,752 $30.99 37,373 $27.36 
RSUs39,730 76.31 3,825 32.25 6,185 27.16 
Equity-Based Compensation
Equity-based compensation expense is recognized on a straight-line basis and is included in our consolidated statements of operations as follows:
Year Ended December 31,
(in thousands)202520242023
Cost of sales$2,136 $887 $— 
Selling, general, and administrative expenses15,886 10,595 39,222 
Total stock-based compensation expense
$18,022 $11,482 $39,222 
As of December 31, 2025, total unrecognized stock-based compensation related to unvested RSUs and PSUs was $30.4 million, which will be recognized as follows:
(in thousands)
2026$16,603 
202711,014 
20282,786 
Total unrecognized stock-based compensation$30,403 
v3.25.4
Non-Controlling Interests
 12 Months Ended
Dec. 31, 2025
Noncontrolling Interest [Abstract]  
Non-Controlling Interests
NOTE 14 — Non-Controlling Interests
Dutch Bros Inc. is the sole managing member of Dutch Bros OpCo, and, as a result, consolidates the financial results of Dutch Bros OpCo. We report a non-controlling interest representing the economic interest in the Dutch Bros OpCo held by the other members of Dutch Bros OpCo. The OpCo LLC Agreement provides that holders of Dutch Bros OpCo Class A common units may, from time to time, require Dutch Bros OpCo to redeem all or a portion of their Dutch Bros OpCo Class A common units for newly issued shares of Class A common stock on a one-for-one basis. In connection with any redemption or exchange, Dutch Bros Inc. will receive a corresponding number of Dutch Bros OpCo Class A common units, increasing Dutch Bros Inc.’s total ownership in Dutch Bros OpCo. Changes in Dutch Bros Inc.’s ownership in Dutch Bros OpCo, while Dutch Bros Inc. retains its controlling interest in Dutch Bros OpCo, will be accounted for as equity transactions. As such, future redemptions or direct exchanges of Dutch Bros OpCo Class A common units by the other members of Dutch Bros OpCo will result in a change in ownership and reduce the amount recorded as non-controlling interest and increase additional paid-in-capital.
The following table summarizes the ownership interest in Dutch Bros OpCo¹:
December 31, 2025
(units in thousands)
OpCo UnitsOwnership %
Dutch Bros OpCo Class A common units held by Dutch Bros Inc.
127,054 71.6 %
Dutch Bros OpCo Class A common units held by non-controlling interest holders2
50,481 28.4 %
Total Dutch Bros OpCo Class A common units outstanding177,535 100.0 %
_______________
1 Dutch Bros OpCo effected a recapitalization on February 7, 2025. For additional information, refer to NOTE 1 — Organization and Background.
2 Non-controlling interest ownership includes approximately 13 million Class A common units that were decoupled from Class B common shares; these units can be converted on a one-for-one basis to Class A common stock.
The following table summarizes the effect of changes in ownership of Dutch Bros OpCo on our equity for the periods presented:
Year Ended December 31,
(in thousands)202520242023
Net income attributable to Dutch Bros Inc.$79,842 $35,258 $1,718 
Other comprehensive income (loss):
Unrealized gain (loss) on derivative securities, effective portion, net of income tax impacts
(580)84 (269)
Additional paid-in capital:
Increase as a result of equity-based compensation
12,794 6,980 15,177 
Increase (decrease) as a result of common stock issuances pursuant to vesting of equity awards, net of stock withheld for tax
(8,850)1,743 (661)
Increase (decrease) as a result of the acquisition of Dutch Bros OpCo Class A common units
41,193 115,989 (158,152)
Total effect of changes in ownership interest on equity attributable to Dutch Bros Inc.$124,399 $160,054 $(142,187)
The weighted-average ownership percentage for the applicable reporting period is used to attribute net income to Dutch Bros Inc. and the non-controlling interest holders. The non-controlling interest holders’ weighted-average ownership percentage were as follows for the periods presented:
Year Ended December 31,
202520242023
Weighted-average ownership percentage of non-controlling interest holders
29.4 %41.6 %62.8 %
Under the OpCo LLC Agreement, Dutch Bros OpCo is required to make certain distributions to its members with regard to tax obligations. Such distributions paid to members were as follows for the periods presented, and no amounts were payable as of the periods then ended.
 
Year Ended December 31,
(in thousands)202520242023
Amounts paid to non-controlling interest holders
$6,867 $1,888 $— 
v3.25.4
Income Per Share
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Income Per Share
NOTE 15 — Income Per Share
The following tables set forth the numerators and denominators used to compute basic and diluted net income per share of Class A and Class D common stock for the periods presented:
Year Ended December 31,
(in thousands)202520242023
Numerator:
Net income $117,275 $66,450 $9,952 
Less: Net income attributable to non-controlling interests
37,433 31,192 8,234 
Net income attributable to Dutch Bros Inc.
$79,842 $35,258 $1,718 
Year Ended December 31,
(in thousands, except per share amounts)202520242023
Basic net income per share attributable to common stockholders
Numerator:
Net income attributable to Dutch Bros Inc.
$79,842 $35,258 $1,718 
Denominator:
Weighted-average number of shares of Class A and Class D common stock outstanding - basic ¹
125,329 103,504 62,074 
Basic net income per share attributable to common stockholders ¹
$0.64 $0.34 $0.03 
_______________
1 Class D common shares were included in net income per share and weighted-average number of shares calculations in periods prior to June 2024. As of June 2024, all Class D common shares were converted to Class A common shares.
Year Ended December 31,
(in thousands, except per share amounts)202520242023
Diluted net income per share attributable to common stockholders
Numerator:
Undistributed net income for basic computation
$79,842 $35,258 $1,718 
Increase in net income attributable to common stockholders upon conversion of potentially dilutive instruments
92 110 — 
Allocation of undistributed net income
$79,934 $35,368 $1,718 
Denominator:
Number of shares used in basic computation125,329 103,504 62,074 
Add: weighted-average effect of dilutive securities
RSAs
— 12 — 
RSUs
435 613 — 
Weighted-average number of shares of Class A and Class D common stock outstanding used to calculate diluted net income per share ¹
125,764 104,129 62,074 
Diluted net income per share attributable to common stockholders ¹
$0.64 $0.34 $0.03 
_______________
1 Class D common shares were included in net income per share and weighted-average number of shares calculations in periods prior to June 2024. As of June 2024, all Class D common shares were converted to Class A common shares.
The following Class A common stock equivalents were excluded from diluted net income per share in the periods presented because they were anti-dilutive:
Year Ended December 31,
(in thousands)
202520242023
RSAs
— — 1,283 
RSUs
218 90 648 
PSUs51 — — 
Total anti-dilutive securities269 90 1,931 
v3.25.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
NOTE 16 — Commitments and Contingencies
Purchase Obligations
We enter into fixed-price and price-to-be-fixed green coffee purchase commitments. For both fixed-price and price-to-be-fixed purchase commitments, we expect to take delivery of green coffee and to utilize the coffee in a reasonable period of time in the ordinary course of business. Such contracts are used for the normal purchases of green coffee and not for speculative purposes. We do not enter into futures contracts or other derivative instruments related to our green coffee purchase commitments.
Guarantees
We periodically provide guarantees to franchise partners for lease payments. As of December 31, 2025 and December 31, 2024, we had guaranteed approximately $7.8 million and $8.2 million, respectively, in franchise partners’ lease payments and have not established a liability for these guarantees as any liability arising from the guarantees is not material to the consolidated financial statements.
Legal Proceedings
The Company is a party to routine legal actions arising in the ordinary course of and incidental to its business. These claims, legal proceedings, and litigation principally arise from alleged casualty, employment, and other disputes.
In determining loss contingencies, the Company considers the likelihood of loss as well as the ability to reasonably estimate the amount of such loss or liability. An estimated loss is recognized when it is considered probable that a liability has been incurred and when the amount of loss can be reasonably estimated.
Because litigation is inherently unpredictable, assessing contingencies is highly subjective and requires judgments about future events. When evaluating litigation contingencies, we may be unable to provide a meaningful estimate due to a number of factors, including the procedural status of the matter in question, developments in legislation or regulations that affect the validity of certain claims and defenses, the availability of appellate remedies, insurance coverage related to the claim or claims in question, the presence of complex or novel legal theories, and/or the ongoing discovery and development of information important to the matter.
Any claim, proceeding, or litigation has an element of uncertainty, and an unfavorable outcome may have a material adverse effect on the Company’s financial condition, results of operations, or cash flows.
Liabilities Under Tax Receivable Agreements
Under the TRAs, Dutch Bros Inc. is contractually committed to pay the non-controlling interest holders 85% of the amount of any tax benefits that Dutch Bros Inc. actually realizes, or in some cases is deemed to realize, as a result of certain transactions. As of December 31, 2025, Dutch Bros Inc. recognized $821.0 million of liabilities related to its obligations under the TRAs. Refer to NOTE 11 — Tax Receivable Agreements for additional information.
v3.25.4
Related Party Transactions
 12 Months Ended
Dec. 31, 2025
Related Party Transactions [Abstract]  
Related Party Transactions
NOTE 17 — Related Party Transactions
Related party transactions were as follows for the periods presented:
Year Ended December 31,
(in thousands)202520242023
Distributions and TRA payments to Co-Founder and Sponsor ¹$11,565 $1,888 $— 
Sales of Company Aircraft ²:
Sales price
— 9,545 — 
Net book value
— 8,243 — 
Gain on disposal of Aircraft
— 1,302 — 
Donations to Dutch Bros Foundation4,250 4,250 250 
_______________
1 See NOTE 11 — Tax Receivable Agreements and NOTE 14 — Non-Controlling Interests for further information.
2 In June 2024 and July 2024, respectively, we sold our airplane, and hangar and related equipment (collectively, the Aircraft), to our Co-Founder.
The Dutch Bros Foundation is a not-for-profit organization founded by our Company that provides grants to other not-for-profit organizations throughout the communities we serve. Our Vice Chair, Chief Financial Officer, Chief People Officer, Chief Legal Officer, and SVP of Brand Marketing serve on the board of directors, our Vice Chair serves as the President, and our Chief Legal Officer serves as the Secretary-Treasurer.
v3.25.4
Segment Reporting
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting
NOTE 18 — Segment Reporting
Segment information is prepared on the same basis that our CEO, who is the CODM, manages the segments, evaluates financial results and makes key operating decisions. Our CEO evaluates financial performance based on two operating segments, which offer distinct products and services to different customers: Company-operated shops and Franchising and other. The Company-operated shops segment includes retail coffee shop sales to end consumers. The Franchising and other segment includes bean and product sales to franchise partners, initial franchise fees, royalties, and marketing fees related to the franchise partners, as well as sales of products through our website.
The CODM reviews segment performance and allocates resources based upon segment contribution, which is defined as segment gross profit before depreciation and amortization. Segment contribution is used to monitor and assess segment results compared to prior periods, forecasted results, and our annual operating plan.
All segment revenue is earned in the United States. All intercompany sales amongst the Dutch Bros entities are fully eliminated in consolidation. Further, there are no intersegment revenues. The CODM does not evaluate operating segments using discrete asset information.
Selling, general and administrative expenses primarily consist of unallocated corporate expenses. Unallocated corporate expenses include corporate administrative functions that support the segments but are not directly attributable to or managed by any segment and are not included in the reported financial results of the segments.
No changes have been made to our segments during the three years ended December 31, 2025. In addition, no customer represented 10% or more of total revenue for each of the three years in the period ended December 31, 2025.
Financial information for our reportable segments was as follows for the periods presented:
 Year Ended December 31,
(in thousands)20252024 2023
Revenues
Company-operated shops$1,509,329 $1,165,830 $857,939 
Franchising and other128,830 115,185 107,837 
Total revenues1,638,159 1,281,015 965,776 
Cost of sales
Company-operated shops
Beverage, food & packaging390,331 296,752 230,133 
Labor costs405,932 315,805 230,505 
Occupancy & other costs251,106 191,372 140,895 
Pre-opening costs25,355 15,133 14,083 
Franchising and other29,736 30,100 31,378 
Segment cost of sales1
1,102,460 849,162 646,994 
Segment contribution
Company-operated shops436,605 346,768 242,323 
Franchising and other99,094 85,085 76,459 
Total segment contribution$535,699 $431,853 $318,782 
Segment depreciation and amortization
(111,753)(91,724)(67,486)
Selling, general and administrative(262,766)(234,036)(205,074)
Interest expense, net(28,305)(27,020)(32,321)
Other income, net
2,748 5,812 3,018 
Income before income taxes
$135,623 $84,885 $16,919 
__________________
1 Segment cost of sales for this presentation excludes the impact of depreciation and amortization.
v3.25.4
Subsequent Events
 12 Months Ended
Dec. 31, 2025
Subsequent Events [Abstract]  
Subsequent Events
NOTE 19 — Subsequent Event
On January 23, 2026, the Company purchased the assets, primarily consisting of right-of-use leases, of Clutch Coffee for the base purchase price of $19.8 million, less purchase price adjustments, which was funded with cash on hand. Clutch Coffee had 22 locations operating or under construction in North Carolina and South Carolina. The Company principally intends to develop 20 of the acquired sites as Dutch Bros-branded company-operated shops by the end of 2026.
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.4
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
We rely on information technology networks and systems and data processing to manage a variety of business processes and activities, including, without limitation, to process customer payments and conduct our marketing efforts. We have implemented and maintain various information security processes designed to identify, assess, and manage material risks from cybersecurity threats to our critical computer networks, third party hosted services, communications systems, hardware and software, and our critical data, including intellectual property, confidential information that is proprietary, strategic, or competitive in nature, and customer data.
We utilize certain third-party service providers to perform a variety of functions, such as outsourcing certain business critical functions, augmenting staff for after-hours support, help tracking chain of custody for physical PCI devices for our shops, providing applications, hosting our systems, distributing our products, property management, providing cloud-based infrastructure, data center facilities, encryption and authentication technology, supporting corporate productivity services, and other functions. Depending on the nature of the services provided, the sensitivity and quantity of information processed, and the identity of the service provider, for certain service providers, our vendor management process includes reviewing the cybersecurity practices of certain providers, contractually imposing obligations on certain providers related to the services they provide and/or the information they process, conducting
security vulnerability assessments, requiring providers to complete written questionnaires regarding their services and data handling practices, conducting periodic re-assessments during their engagement, using a third party vendor management security company to provide certain ongoing monitoring, or annually collecting certain information security-related compliance documentation and reports.
Our assessment and management of material risks from cybersecurity threats are considered in the Company’s overall risk management processes. For example, the Company maintains various policies and procedures related to information security, including, for example, an Incident Response Policy and a Cybersecurity Incident Reporting Policy and an AI working group that analyzes the potential risks in connection with the Company’s use of generative AI technologies and/or automated decision-making tools. We identify cybersecurity threats as part of our risk management processes, including (depending on the environment or systems) through internal monitoring, monitoring the threat environment using manual and automated tools, subscribing to reports and services that identify cybersecurity threats, analyzing reports of threats and actors, conducting scans of the threat environments, evaluating our and our industry’s risk profile, evaluating threats reported to us, conducting threat assessments for internal and external threats, and conducting security vulnerability assessments to identify vulnerabilities. Our information technology team is responsible for identifying, assessing, and managing the Company’s cybersecurity threats and risks under the oversight of our Chief Information Security Officer. This team works with third parties from time to time to help identify, assess, and manage cybersecurity risks, including professional services firms and other vendors.
Based on our assessment process, we implement and maintain various technical, physical, and organizational measures designed to manage and mitigate cybersecurity risks and potential material impacts. Depending on the environment or systems, we implement measures designed to prevent, detect, respond to, mitigate, and recover from identified and significant cybersecurity threats. The risk management and reduction measures we implement for certain of our environments or systems include: policies and procedures designed to address cybersecurity threats, including an incident response policy, acceptable use policy, and vulnerability management policy; internal and/or external security audit assessments of select environments to assess our exposure to cybersecurity threats, compliance with risk mitigation procedures, and the effectiveness of relevant controls; documented risk assessments; encryption of certain data; network security controls in certain systems; physical and electronic access controls in certain environments; asset management, tracking and disposal; systems monitoring of certain systems; employee security training; penetration testing of certain environments; maintaining cyber insurance; and a dedicated cybersecurity leader.
Our business, results of operations, financial condition, or reputation could be materially affected as a result of certain risks from cybersecurity threats, including for example, due to: the cost of and modification of business activities and implementation of security measures; system failure, data loss, fraud or theft; disruptions, including in operations; delays in remediation of high risk or critical vulnerabilities; costs of notices and other disclosures that may be required by applicable data privacy and security obligations; or our inability to recover such costs under insurance policies or contractual rights. See "Risks Related to Our Business" in Item 1A, Risk Factors for more information and a description of the risks from cybersecurity threats that materially affect the Company.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] We have implemented and maintain various information security processes designed to identify, assess, and manage material risks from cybersecurity threats to our critical computer networks, third party hosted services, communications systems, hardware and software, and our critical data, including intellectual property, confidential information that is proprietary, strategic, or competitive in nature, and customer data.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block] The Audit and Risk Committee of the board of directors is responsible for oversight of the Company’s processes and policies for enterprise risk identification, management, and assessment, including certain risks around data privacy, technology, and information security.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The Audit and Risk Committee of the board of directors is responsible for oversight of the Company’s processes and policies for enterprise risk identification, management, and assessment, including certain risks around data privacy, technology, and information security.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]
Our cybersecurity incident response processes are designed to escalate certain cybersecurity incidents to members of management depending on the circumstances, including reporting certain incidents to a cross-functional group responsible for making ongoing assessments of reported incidents. This group is led by our Chief Legal Officer and Chief Information Security Officer, and includes members of our standing Disclosure Committee. The Chief Legal Officer is responsible for informing the Audit and Risk Committee regarding certain significant cybersecurity threats and risks, and meets with the Audit and Risk Committee periodically or at special meetings to review and discuss issues. Additionally, our Chief Legal Officer oversees an annual enterprise risk assessment that addresses certain applicable cybersecurity risks, the results of which are presented to the Audit and Risk Committee. We also engage a third party consulting firm to assist with our annual enterprise risk assessment. Our Chief Legal Officer works with the Board, senior management, others at various levels of the organization, and our outside advisors to help identify, assess, and validate the Company’s top risks, taking into account past risk mitigation activities and future plans. Under our Cybersecurity Incident Reporting Policy, the Chief Legal Officer is also responsible for communicating to the Audit and Risk Committee the activities of the Company related to the assessments and reporting of potentially significant cybersecurity incidents.
Cybersecurity Risk Role of Management [Text Block]
The Audit and Risk Committee of the board of directors is responsible for oversight of the Company’s processes and policies for enterprise risk identification, management, and assessment, including certain risks around data privacy, technology, and information security. Our cybersecurity risk assessment and management processes are implemented and maintained by certain Company management, including our Chief Information Security Officer, who has over 20 years of experience designing, building, and executing teams and programs in the cybersecurity field, in both leadership and hands-on technical positions across numerous industries including retail, software and technology, medical device manufacturing, and cyber advisory and audit services.
Our Chief Information Security Officer is responsible for hiring appropriate personnel, helping to integrate cybersecurity risk considerations into the Company’s overall risk management strategy, and communicating key priorities to relevant personnel. Our Chief Information Security Officer and his team are responsible for approving budgets, helping prepare for cybersecurity incidents, approving cybersecurity processes, and reviewing security assessments and other security-related reports.
Our cybersecurity incident response processes are designed to escalate certain cybersecurity incidents to members of management depending on the circumstances, including reporting certain incidents to a cross-functional group responsible for making ongoing assessments of reported incidents. This group is led by our Chief Legal Officer and Chief Information Security Officer, and includes members of our standing Disclosure Committee. The Chief Legal Officer is responsible for informing the Audit and Risk Committee regarding certain significant cybersecurity threats and risks, and meets with the Audit and Risk Committee periodically or at special meetings to review and discuss issues. Additionally, our Chief Legal Officer oversees an annual enterprise risk assessment that addresses certain applicable cybersecurity risks, the results of which are presented to the Audit and Risk Committee. We also engage a third party consulting firm to assist with our annual enterprise risk assessment. Our Chief Legal Officer works with the Board, senior management, others at various levels of the organization, and our outside advisors to help identify, assess, and validate the Company’s top risks, taking into account past risk mitigation activities and future plans. Under our Cybersecurity Incident Reporting Policy, the Chief Legal Officer is also responsible for communicating to the Audit and Risk Committee the activities of the Company related to the assessments and reporting of potentially significant cybersecurity incidents.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our cybersecurity risk assessment and management processes are implemented and maintained by certain Company management, including our Chief Information Security Officer, who has over 20 years of experience designing, building, and executing teams and programs in the cybersecurity field, in both leadership and hands-on technical positions across numerous industries including retail, software and technology, medical device manufacturing, and cyber advisory and audit services.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] who has over 20 years of experience designing, building, and executing teams and programs in the cybersecurity field, in both leadership and hands-on technical positions across numerous industries including retail, software and technology, medical device manufacturing, and cyber advisory and audit services.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]
Our cybersecurity incident response processes are designed to escalate certain cybersecurity incidents to members of management depending on the circumstances, including reporting certain incidents to a cross-functional group responsible for making ongoing assessments of reported incidents. This group is led by our Chief Legal Officer and Chief Information Security Officer, and includes members of our standing Disclosure Committee. The Chief Legal Officer is responsible for informing the Audit and Risk Committee regarding certain significant cybersecurity threats and risks, and meets with the Audit and Risk Committee periodically or at special meetings to review and discuss issues. Additionally, our Chief Legal Officer oversees an annual enterprise risk assessment that addresses certain applicable cybersecurity risks, the results of which are presented to the Audit and Risk Committee. We also engage a third party consulting firm to assist with our annual enterprise risk assessment. Our Chief Legal Officer works with the Board, senior management, others at various levels of the organization, and our outside advisors to help identify, assess, and validate the Company’s top risks, taking into account past risk mitigation activities and future plans. Under our Cybersecurity Incident Reporting Policy, the Chief Legal Officer is also responsible for communicating to the Audit and Risk Committee the activities of the Company related to the assessments and reporting of potentially significant cybersecurity incidents.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Basis of Presentation and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Financial Statements Presentation
Financial Statements Presentation
Our consolidated financial statements as of December 31, 2025 and for the three years then ended have been prepared in accordance with GAAP and pursuant to the rules and regulations of the SEC
Principles of Consolidation
Principles of Consolidation
The consolidated financial statements include the accounts of our Company and subsidiaries that we control due to ownership of a majority voting interest or pursuant to accounting guidance for non-controlling interests. All intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates
Use of Estimates
The presentation of consolidated financial statements in conformity with GAAP requires that we make estimates and assumptions, primarily related to long-lived asset valuation, leases, deferred revenue, tax receivable agreements, income taxes, and equity-based compensation that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Although we base our estimates on historical experience and assumptions that are believed to be reasonable under the circumstances, actual results could differ from those estimates.
Cash and Cash Equivalents
Cash and Cash Equivalents
Cash and cash equivalents include all short-term highly liquid instruments with original maturities of three months or less at the time of purchase, as well as credit card receivables for sales to customers in company-operated shops that generally settle within two to five business days. Our cash accounts are maintained at various high credit quality financial institutions and may exceed federally insured limits. We have not experienced any losses in such accounts.
Fair Value Measurements
Fair Value Measurements
We apply fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in our consolidated financial statements. We categorize assets and liabilities, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy as set forth below. The three levels of the hierarchy are defined as follows:
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2 – Observable inputs other than quoted prices in active markets for identical assets or liabilities, quoted prices for identical assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 – Inputs that are both unobservable and significant to the overall fair value measurements reflecting an entity's estimates of assumptions that market participants would use in pricing the asset or liability.
Our consolidated balance sheets include cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, and other current liabilities, for which the carrying amounts approximate fair value due to their short-term maturity. The fair value of our variable-rate credit facilities approximate their carrying amounts as the cost of borrowing is variable and approximates current market prices, which is considered Level 2 in the fair value hierarchy.
Derivative Instruments
Derivative Instruments
We manage exposure to fluctuations in interest rates within our consolidated financial statements according to a hedging policy. Under this policy, we may from time to time enter into interest rate swap agreements to fix a portion of interest expense and hedge interest rate risk. A swap agreement is a contract between two parties to exchange cash flows based on specified underlying notional amounts, assets and/or indices. We do not enter into derivative instruments for speculative purposes or for any other purpose other than to manage its risks related to fluctuations in interest rates.
By using swap instruments, we are exposed to potential credit risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. We minimize this credit risk by entering into transactions with carefully selected, credit-worthy counterparties.
Cash Flow Hedges
Cash flow hedges related to anticipated transactions are designated and documented at the inception of each hedge. Cash flows from hedging transactions are classified in the same categories as the cash flows from the respective hedged items.
For derivative instruments that are designated and qualify as a cash flow hedge, the derivative's gain or loss is reported as a component of other comprehensive income and recorded in accumulated other comprehensive income on the Company’s consolidated balance sheets. The gain or loss is subsequently reclassified into net earnings when the hedged exposure affects net earnings, in the same line item as the underlying hedged item on our consolidated statements of operations.
We may discontinue hedge accounting when:
•it is determined that the cash flow derivative is no longer effective in offsetting changes in the cash flows of a hedged item;
•the derivative expires or is sold, terminated or exercised;
•it is no longer probable that the forecasted transaction will occur; or
•management determines that designation of the derivatives as a hedge instrument is no longer appropriate.
Accounts Receivable
Accounts Receivable
Accounts receivable, net of allowance for credit losses, consist primarily of royalty revenues, outstanding balances for sales of roasted coffee beans, Dutch Bros Rebel, retail gift cards, other retail-related supplies to franchisees, and vendor rebates. The allowance for credit losses is estimated based on our historical losses adjusted for current, reasonable and supportable forecasts of economic conditions and other pertinent factors affecting our customers and vendors, including review of specific accounts, financial stability and credit worthiness. Accounts receivable are charged off against the allowance for credit losses when the financial condition of our customers and vendors is adversely affected and they are unable to meet their financial obligations.
Inventories
Inventories
Inventories, net consist primarily of roasted and unroasted coffee beans, Dutch Bros Rebel, and other retail related supplies. Inventories are stated at the lower of cost or net realizable value, with cost being determined on a first-in, first-out basis. We record product returns as they are received, and obsolete and slow-moving inventory when identified, as these types of transactions have generally been immaterial to our historical operations.
Property and Equipment
Property and Equipment
Property and equipment, net are stated at cost less accumulated depreciation. Expenditures for maintenance, repairs, and routine replacements are charged to expense as incurred. Expenditures for major repairs and improvements that extend the useful lives of property and equipment are capitalized. When property or equipment is sold or otherwise disposed of, the asset and related accumulated depreciation are removed from the balance sheet and any gain or loss is included in income from operations in the accompanying consolidated statements of operations. Depreciation is computed on a straight-line basis over the following useful lives:
(in years)
Estimated Useful Life
Software
3
Equipment and fixtures
3 - 7
Leasehold improvements
5 - 15 1
Buildings
10 - 39
_________________
1    Lesser of lease term or useful life
We capitalize costs associated with the acquisition or development of major software for internal use and amortize the assets over the expected life of the software, generally 3 years. We only capitalize subsequent additions, modifications, or upgrades to internal-use software to the extent that such changes allow the software to perform a task it previously did not perform. Software maintenance and training costs are expensed as incurred.
Leases
Leases
We lease our company-operated shops, warehouse facilities, headquarters buildings, and certain equipment under non-cancelable lease agreements that expire on various dates through 2050. Our real estate leases consist of build-to-suit and commercial ground leases with typical initial terms of 15 or 20 years, respectively and include one to three renewal periods of five-years each. Renewals are included in the lease term when it is reasonably certain that the renewal period will be exercised. We recognize a right-of-use asset and lease liability for each lease with a contractual term of greater than 12 months at lease inception, and have elected not to recognize leases with terms of 12 months or less.
We calculate right-of-use assets and lease liabilities based on the present value of the fixed minimum lease payments, including any estimated lease incentives, at lease commencement using an estimated incremental borrowing rate corresponding to the lease term and applied on a portfolio basis. We’ve elected not to separate lease and non-lease components on real estate leases.
Lease classification is determined as operating or finance at lease commencement, and expense recognition occurs over the lease term from the date we take possession of the property. For operating leases, expense is recognized on a straight-line basis; for finance leases, expense is recognized on an accelerated basis. We record lease expense in cost of sales and selling, general and administrative expense on our consolidated statements of operations. Variable lease costs are expensed as incurred and recognized in cost of sales on the consolidated statements of operations.
From time to time we may have sale and leaseback transactions that do not qualify for sale-leaseback accounting because of our deemed continuing involvement. Additionally, we may procure a building related to an acquired lease in an asset acquisition. Both of these types of transactions are recorded under the financing method. These financing obligations are included in long-term debt on our consolidated balance sheets.
Goodwill
Goodwill
Recoverability of goodwill is reviewed by reporting unit at least annually, as of the beginning of our fourth fiscal quarter, and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The annual impairment test includes an option to perform a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying value; the qualitative test may be performed prior to, or as an alternative to, performing a quantitative goodwill impairment test. If, after assessing the totality of events or circumstances, it is determined that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value, we are required to perform the quantitative goodwill impairment test. Otherwise, no further analysis is required. We performed the annual qualitative impairment assessments for each of the three years in the period ended December 31, 2025, and no impairment charges were recognized, nor were there any accumulated impairment losses.
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets
Long-lived assets are reviewed for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. The assessment of recoverability of property and equipment and finite-lived intangible assets is performed at the component level, which is generally an individual shop, and requires judgment and an estimate of future undiscounted shop-generated cash flows. Estimates of fair values are based on the best information available and require the use of estimates, judgments, and projections. We test for recoverability by comparing the carrying value of the asset to the undiscounted cash flows. If the carrying value is not recoverable, we would recognize an impairment loss if the carrying value of the asset exceeds the fair value. We performed the annual assessments for each of the three years in the period ended December 31, 2025, and no impairment charges were recognized, nor were there any accumulated impairment losses.
Revenue Recognition
Revenue Recognition
Consolidated revenues are recognized net of any discounts, returns, allowances and sales incentives.
Company-operated Shops Revenue
Retail sales from company-operated shops are recognized at the point in time when the products are sold to the customers. We report revenues net of sales taxes collected from customers and remitted to government taxing authorities.
Loyalty Program
The Company operates Dutch Pass, our digital loyalty program accessible via mobile app, which provides customers the opportunity to collect points based on purchases. Points can be redeemed for rewards which include free drinks. Additionally, customers can receive birthday and other promotional awards within Dutch Pass.
Points earned and not redeemed for rewards within 180 days automatically expire, and rewards that are not used within 180 days of issuance automatically expire. Separately, birthday and other promotional awards generally automatically expire after 30 days, depending on the specific award.
We defer revenue based on the estimated value of beverages for which the points, rewards, and awards are expected to be redeemed. Based on historical expiration rates, a portion of points, rewards, and awards are not expected to be redeemed and are recognized as breakage.
Gift Card Program
We maintain a contract liability for physical gift cards sold at Company-owned shops, digital gift cards, and retail gift cards purchased at third party retails stores, recognizing revenue when a gift card is redeemed. Gift cards do not have an expiration date or a service fee causing a decrement to the customer balance. Program costs related to retail gift cards sales are deferred and recognized in selling general and administrative expenses in the period in which the gift cards are redeemed. Based on historical redemptions rates, a portion of gift cards are not expected to be redeemed and are recognized as breakage.
Franchising Revenue
Franchise royalty fees are generally computed as a percentage of net franchise sales and are charged for continuing support of franchisees for various services provided by us. These services are highly interrelated, and as such are accounted for as a single performance obligation.
Separately, we receive marketing fees from franchisees for promotion of the Dutch Bros brand. Contributions are based on a percentage of shop sales and marketing expenditures include payments to third parties and other costs. We determined our advertising and promotion management services do not represent individually distinct performance obligations and are included in the franchise performance obligation.
Initial and other deferred franchise fees are recorded as a contract liability, and revenue is recognized ratably over the term of the franchise agreement, which is generally ten years.
Other franchising revenue, including coffee bean sales, Dutch Bros Rebel energy drink sales, and other sales, are recognized when shipped.
Other Revenue
Other revenue includes retail coffee and other food and beverage sales, recognized at the date of sale, as well as sales of products through our website, recognized at the point in time of shipment to customers.
Deferred Revenue
Deferred revenue primarily consists of the unredeemed gift card liability and unredeemed points/rewards from our Dutch Rewards loyalty program. Deferred revenue also includes bean and beverage sales to distributors where the performance obligation has not yet been satisfied as control has not transferred to the customer.
Store Pre-opening Expenses
Shop Pre-opening Expenses
Pre-opening expenses incurred with the opening of new company-operated shops are expensed as incurred. These costs include rent expense, wages, benefits, travel and lodging for the training and opening management teams, and beverage and other operating expenses incurred prior to a shop opening for business and are included in cost of sales.
Vendor Rebates
Vendor Rebates
We have food and beverage supply agreements with certain major vendors. Per the terms of these arrangements, vendor rebates are provided to us based on the dollar value of purchases for systemwide shops. These rebates are recognized as earned throughout the year and are recorded as accounts receivable and a reduction to cost of sales.
Advertising Expense
Advertising Expense
Advertising costs are expensed as incurred. Company-operated shop advertising expenses are included within Cost of sales; company-wide promotions and initiatives are included within Selling, general and administrative expenses.
Equity-based Compensation
Equity-based Compensation
The Company granted time-based RSAs to certain officers and employees in connection with the IPO which, as of December 31, 2024, had each fully vested. Additionally, the Company grants time-based RSUs to directors and certain employees. These awards vest over a three-year service period with one-third of the award value vesting annually. The RSUs are accounted for as equity-classified awards, and are granted at the fair value of the underlying Class A common stock of Dutch Bros Inc. as of the grant date.
In 2025, the Company granted PSUs to a small group of senior management employees. The PSUs are subject to a three-year plus maximum 90-day service period and a market condition. The number of shares of Dutch Bros Inc.'s Class A common stock to be received at vesting range from 0% to 200% of the target amount. The payout percentage is based on TSR performance measured during a three-year performance period that commences on the grant date of any given award and ends three years from that date. TSR performance is measured based on Dutch Bros Inc.'s stock price appreciation compared to peer companies' stock price appreciation during the performance period. The PSUs are accounted for as equity-classified awards, valued upon grant using the Monte Carlo Simulation model.
Vesting of all awards granted are subject to the grantee’s continued service at Dutch Bros through the applicable vesting date. The cost of the Company’s equity awards is recognized as expense over the grantee’s requisite service period, and forfeitures are accounted for as they occur.
Tax Receivable Agreements
Tax Receivables Agreements
In connection with the IPO, the Company executed two TRAs which provide for payment by the Company to certain Dutch Bros OpCo owners of 85% of the benefits, if any, that the Company would be deemed to realize (calculated using certain assumptions) as a result of certain tax attributes and benefits covered by the TRAs.
The Company expects to obtain an increase in its share of the tax basis in the net assets of Dutch Bros OpCo when OpCo Units are exchanged by Pre-IPO Dutch Bros OpCo Unitholders. The Company treats any redemptions and exchanges of OpCo Units as direct purchases for U.S. federal income tax purposes. These increases in tax basis may reduce the amounts that it would otherwise pay in the future to various tax authorities. They may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets.
TRA-related liabilities are classified on the Company’s consolidated balance sheets as current or non-current assets based on the expected date of payment under the captions “Current portion of tax receivable agreements liability” and “Tax receivable agreements liability, net of current portion,” respectively.
Income Taxes
Income Taxes
The Company is a corporation and sole managing member of Dutch Bros OpCo which is treated as a partnership for tax purposes.

The Company records income tax provision, deferred tax assets, deferred tax liabilities, uncertain tax positions, and valuation allowance, as applicable, only for the items for which the Company is responsible to the relevant tax authority.
Deferred income taxes result from temporary differences between the financial reporting and tax basis of assets and liabilities, and are measured using the enacted tax rates and laws expected to be in effect when such differences are expected to reverse. These temporary differences are reflected as deferred income tax assets, net on the consolidated balance sheets. A deferred tax asset is recognized if it is more likely than not that a tax benefit will be realized.
The Company recognizes tax benefits from entity-level uncertain tax positions if it is more likely than not that the tax position will be sustained on examination by the tax authorities, based on technical merits of the position. The tax benefit is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement.
Income Per Share
Income Per Share
Basic income per share of Class A and Class D common stock is computed by dividing net income attributable to Dutch Bros Inc. by the weighted-average number of shares of Class A and Class D common stock outstanding during the period. Diluted income per share of Class A and Class D common stock is computed by dividing net income attributable to Dutch Bros Inc., adjusted for the assumed exchange of all potentially dilutive instruments for Class A common stock, by the weighted-average number of shares of Class A and Class D common stock outstanding, adjusted to give effect to potentially dilutive elements. Share counts used in the diluted income per share calculations are adjusted for the deemed repurchases provided for in the treasury stock method for RSAs, RSUs and PSUs, and under the if-converted method for the outstanding convertible Class B and Class C common stock, if dilutive.
As of June 2024, all Class D common shares were converted to Class A common shares.
Shares of the Company’s Class B and Class C common stock do not participate in the earnings or losses of the Company and are therefore not participating securities. As such, separate presentation of basic and diluted income (loss) per share of Class B and Class C common stock under the two-class method has not been presented.
Recently Issued Accounting Standards and Recently Adopted Accounting Standards
Recently Issued Accounting Standards
In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The intent of this ASU is to address businesses’ shift from using prescriptive and sequential software development methods to using incremental and iterative development methods. The amendments in this ASU remove all references to prescriptive and sequential software development stages, and also provides criteria for when an entity is required to start capitalizing software costs. ASU 2025-06 is effective for all entities' annual reporting periods beginning after December 15, 2027, and interim periods within those annual reporting periods using a prospective transition, modified transition or retrospective transition approach. Early adoption is permitted as of the beginning of an annual reporting period. We are currently assessing potential impacts of this standard on our business processes and future disclosures.
In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40). The intent of this ASU is to improve public entity financial footnote disclosures around types of expenses in commonly presented expense categories (i.e., cost of sales; selling, general, and administrative expense; and research and development expense). The amendments in this ASU do not change or remove current expense disclosure requirements, but rather 1) impact where this information appears in the notes to the consolidated financial statements and 2) add additional disclosure requirements for certain expense line items appearing on the face of our consolidated statements of operations. ASU 2024-03, as amended, is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. We are currently assessing potential impacts of this standard on our business processes and future disclosures.
Recently Adopted Accounting Standards
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update are intended to enhance the transparency and decision usefulness of income tax disclosures, primarily through improvements to the rate reconciliation and income taxes paid information, specifically requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation, and (2) income taxes paid disaggregation by jurisdiction. We adopted ASU 2023-09 on a retrospective basis, and the standard has had no material impact on our consolidated financial statements. We have, however, provided additional detail and disclosures under the new guidance in NOTE 12 — Income Taxes.
v3.25.4
Basis of Presentation and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Schedule of Property and Equipment, Net Depreciation is computed on a straight-line basis over the following useful lives:
(in years)
Estimated Useful Life
Software
3
Equipment and fixtures
3 - 7
Leasehold improvements
5 - 15 1
Buildings
10 - 39
_________________
1    Lesser of lease term or useful life
Property and equipment, net consisted of the following:
(dollars in thousands)
Useful Life (Years)
December 31, 2025December 31, 2024
Software3$14,630 $10,666 
Equipment and fixtures3—7305,116 229,307 
Leasehold improvements5—1568,023 54,535 
Buildings10—39616,299 487,060 
LandN/A7,022 7,022 
Construction-in-progress 1
 N/A
75,225 71,951 
Property and equipment, gross1,086,315 860,541 
Less: accumulated depreciation(261,813)(176,570)
Property and equipment, net$824,502 $683,971 
_______________
1    Construction-in-progress primarily consisted of construction and equipment costs for new and existing shops.
Depreciation expense included in our consolidated statements of operations was as follows:
Year Ended December 31,
(in thousands)202520242023
Cost of sales$82,850 $63,707 $42,807 
Selling, general, and administrative
3,339 1,229 1,634 
Total depreciation expense$86,189 $64,936 $44,441 
v3.25.4
Revenue Recognition (Tables)
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregates Revenue by Major Component
The following table disaggregates revenue by major component:
Year Ended December 31,
(in thousands)202520242023
Company-operated shops$1,509,329 $1,165,830 $857,939 
Franchising122,046 109,610 101,907 
Other6,784 5,575 5,930 
Total revenues$1,638,159 $1,281,015 $965,776 
Schedule of Deferred Revenue Activity
Components of our deferred revenue liability are as follows:
(in thousands)December 31, 2025December 31, 2024
Gift card and loyalty programs
$62,014 $48,265 
Initial unearned franchise fees
2,562 2,618 
Total deferred revenue$64,576 $50,883 

Deferred revenue activity was as follows:
Year Ended December 31,
(in thousands)20252024
Beginning balance$50,883 $37,025 
Revenue deferred 1
567,005 419,107 
Revenue recognized 2
(553,256)(405,458)
Other deferred revenue, net
(56)209 
Ending balance64,576 50,883 
Less: current portion(55,658)(42,868)
Deferred revenue, net of current portion$8,918 $8,015 
_______________
1 Revenue deferred includes gift card activations, loyalty app cash loads and loyalty points and rewards earned.
2 Revenue recognized includes redemptions of gift cards, loyalty app and loyalty rewards redemptions, and breakage.
Revenue recognized during each of the three years in the period ended December 31, 2025, that was included in the respective deferred revenue liability balances at the beginning of the period, are shown below.
Year Ended December 31,
(in thousands)202520242023
Gift card redemptions 1
$8,072 $6,215 $5,149 
Earned franchise fees430 450 454 
_____________________
1    Amounts exclude cash loads and transactions related to our loyalty rewards program.
Schedule of Unearned Franchise Fees
Future recognition of initial unearned franchise fees as of December 31, 2025 is as follows:
(in thousands)
2026427 
2027382 
2028333 
2029288 
2030256 
Thereafter876 
Total$2,562 
v3.25.4
Organization Realignment and Restructurings (Tables)
 12 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring Related Charges
During the years ended December 31, 2025 and 2024 we recorded restructuring charges for employee-related and other costs in selling, general and administrative expenses on the consolidated statements of operations as follows:
Year Ended December 31,
(in thousands)20252024
Relocation and travel costs
$3,288 $11,403 
Termination benefits
4,319 4,146 
Total employee-related costs
7,607 15,549 
Duplicate rent
244 461 
Consulting
387 55 
Total other costs631 2,327 
Total restructuring costs incurred$8,238 $17,876 
Schedule of Restructuring Liability The following table summarizes the activity for the restructuring liabilities during the year ended December 31, 2025:
(in thousands)December 31, 2024Charges
Cash Payments
December 31, 2025
Relocation and travel costs
$698 $3,288 $(3,818)$168 
Termination benefits
2,028 4,319 (4,400)1,947 
Total employee-related costs2,726 7,607 (8,218)2,115 
Duplicate rent
— 244 (244)— 
Consulting
55 387 (433)9 
Total other costs
55 631 (677)9 
Totals$2,781 $8,238 $(8,895)$2,124 
v3.25.4
Supplemental Financial Information (Table)
 12 Months Ended
Dec. 31, 2025
Supplemental Financial Information [Abstract]  
Schedule of Inventories, Net
Inventories, net consisted of the following:
(in thousands)December 31, 2025December 31, 2024
Raw materials$25,516 $14,594 
Finished goods23,401 21,894 
Total inventories$48,917 $36,488 
Schedule of Other Current Liabilities
Other current liabilities consisted of the following:
(in thousands)December 31, 2025December 31, 2024
Accrued compensation and benefits
$50,314 $49,778 
Sales, use and property taxes payable
15,354 4,667 
Other accrued liabilities
33,505 28,916 
Other current liabilities
$99,173 $83,361 
Schedule of Total Employer Contributions The total employer matching contributions to the 401(k) plan recognized in our consolidated statements of operations were as follows:
Year Ended December 31,
(in thousands)202520242023
Cost of sales
$45 $62 $60 
Selling, general, and administrative expenses3,426 2,909 2,281 
Total employer matching contributions
$3,471 $2,971 $2,341 
Schedule of Advertising Expense
Advertising expenses consisted of the following for the periods presented:
Year Ended December 31,
(in thousands)202520242023
Cost of sales
$26,270 $21,897 $18,946 
Selling, general and administrative
12,752 17,313 10,953 
Total advertising expense
$39,022 $39,210 $29,899 
v3.25.4
Property and Equipment (Tables)
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment, Net Depreciation is computed on a straight-line basis over the following useful lives:
(in years)
Estimated Useful Life
Software
3
Equipment and fixtures
3 - 7
Leasehold improvements
5 - 15 1
Buildings
10 - 39
_________________
1    Lesser of lease term or useful life
Property and equipment, net consisted of the following:
(dollars in thousands)
Useful Life (Years)
December 31, 2025December 31, 2024
Software3$14,630 $10,666 
Equipment and fixtures3—7305,116 229,307 
Leasehold improvements5—1568,023 54,535 
Buildings10—39616,299 487,060 
LandN/A7,022 7,022 
Construction-in-progress 1
 N/A
75,225 71,951 
Property and equipment, gross1,086,315 860,541 
Less: accumulated depreciation(261,813)(176,570)
Property and equipment, net$824,502 $683,971 
_______________
1    Construction-in-progress primarily consisted of construction and equipment costs for new and existing shops.
Depreciation expense included in our consolidated statements of operations was as follows:
Year Ended December 31,
(in thousands)202520242023
Cost of sales$82,850 $63,707 $42,807 
Selling, general, and administrative
3,339 1,229 1,634 
Total depreciation expense$86,189 $64,936 $44,441 
v3.25.4
Other Long-Term Assets (Tables)
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Other Assets, Noncurrent
The details of other long-term assets were as follows:
(dollars in thousands)
December 31, 2025December 31, 2024
Reacquired franchise rights1
$27,049 $27,049 
Less: accumulated amortization(25,539)(24,102)
Reacquired franchise rights, net
1,510 2,947 
Goodwill
21,629 21,629 
Other
2,385 2,592 
Total other long-term assets, net
$25,524 $27,168 
_______________
1 Weighted-average amortization periods (in years) were 2.93 and 2.94 for the years ended December 31, 2025 and 2024, respectively.
Schedule of Intangible Assets Amortization Expense
Amortization expense of reacquired franchise rights included in our consolidated statements of operations was as follows:
Year Ended December 31,
(in thousands)202520242023
Cost of sales$1,437 $2,468 $3,389 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
The estimated future amortization expense of the reacquired franchise rights as of December 31, 2025 is as follows:
(in thousands)
2026682 
2027383 
2028247 
2029153 
203042 
Thereafter3 
Total $1,510 
v3.25.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Schedule of Finance and Operation Lease Right-of-Use Assets and Lease Liabilities / Lease Terms and Discount Rates for Finance and Operating Leases
A summary of finance and operating lease right-of-use assets and lease liabilities as of December 31, 2025 and December 31, 2024 is as follows:
(in thousands)Balance Sheet ClassificationDecember 31, 2025December 31, 2024
Right-of-use assets
Finance leases$406,381 $374,623 
Operating leases448,958 315,256 
Lease right-of-use assets, net$855,339 $689,879 
Lease liabilities
Current lease liabilities
Finance leases$17,298 $13,256 
Operating leases19,168 13,979 
Current portion of lease liabilities36,466 27,235 
Non-current lease liabilities
Finance leases402,697 369,297 
Operating leases449,683 309,311 
Lease liabilities, net of current portion852,380 678,608 
Total lease liabilities $888,846 $705,843 
A summary of lease terms and discount rates for finance and operating leases is as follows:
 December 31, 2025December 31, 2024
Weighted-average remaining lease term (years)
Finance leases14.515.3
Operating leases15.515.5
 
Weighted-average discount rate (percentages)
Finance leases6.0%6.0%
Operating leases6.3%5.9%
Schedule of Components of Lease Cost
The components of lease costs, excluding short-term lease costs and sublease income (both immaterial for the periods presented), were as follows:
Statements of Operations Classification
Year Ended December 31,
(in thousands)202520242023
Finance lease costs
Amortization of right-of-use assetsCost of sales$27,467 $25,551 $21,290 
Amortization of right-of-use assets
Selling, general, and administrative
40 50 15 
Interest on lease liabilitiesInterest expense23,289 22,053 17,516 
Total finance lease costs
50,796 47,654 38,821 
Operating lease costs
Lease expenses
Cost of sales40,829 28,703 19,385 
Lease expenses
Selling, general, and administrative
2,835 1,646 55 
Total operating lease costs
43,664 30,349 19,440 
Variable lease costs
Cost of sales9,652 6,874 5,216 
Total lease costs$104,112 $84,877 $63,477 
Schedule of Future Minimum Lease Payments for Financing Lease Liabilities
Future minimum lease payments for finance and operating lease liabilities as of December 31, 2025 are as follows:
(in thousands)FinanceOperating
2026$41,575 $35,367 
202740,644 46,409 
202841,786 45,965 
202942,715 46,706 
203043,118 47,384 
Thereafter431,664 544,593 
Total$641,502 $766,424 
Less: imputed interest(221,507)(297,573)
Present value of minimum lease payments419,995 468,851 
Less: current portion(17,298)(19,168)
Lease liabilities, net of current portion$402,697 $449,683 
Schedule of Future Minimum Lease Payments for Operating Lease Liabilities
Future minimum lease payments for finance and operating lease liabilities as of December 31, 2025 are as follows:
(in thousands)FinanceOperating
2026$41,575 $35,367 
202740,644 46,409 
202841,786 45,965 
202942,715 46,706 
203043,118 47,384 
Thereafter431,664 544,593 
Total$641,502 $766,424 
Less: imputed interest(221,507)(297,573)
Present value of minimum lease payments419,995 468,851 
Less: current portion(17,298)(19,168)
Lease liabilities, net of current portion$402,697 $449,683 
Schedule of Income Taxes Paid (Net Of Refunds)
Supplemental cash flow information related to leases is as follows for the periods presented:
Year Ended December 31,
(in thousands)202520242023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases$23,289 $22,053 $17,516 
Operating cash flows from operating leases1
25,316 22,127 17,167 
Financing cash flows from finance leases16,105 10,541 12,432 
Right-of-use assets obtained in exchange for lease obligations
Finance leases53,547 15,838 144,588 
Operating leases148,332 130,059 40,253 
_______________
1 For the year ended December 31, 2025, the amount presented is net of a $5.4 million tenant improvement allowance received from the landlord related to our Arizona headquarters office lease.
Our income taxes paid (net of refunds) consisted of the following:
Year Ended December 31,
(in thousands)202520242023
U.S. federal$54 $370 $239 
U.S. state and local total
943 1,884 1,492 
Total$996 $2,253 $1,731 
Income taxes paid (net of refunds) exceeded five percent of total income taxes paid (net of refunds) in the following jurisdictions:
Year Ended December 31,
(in thousands)202520242023
Tennessee*$1,276 *
Oregon545 263 773 
Texas393 217 395 
_________________
* Jurisdiction did not exceed the 5% threshold in the period presented.
v3.25.4
Debt (Tables)
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Schedule of Debt Instruments
Our long-term debt consisted of the following for the periods presented:
(in thousands)December 31, 2025December 31, 2024
Term loan under credit facility
$148,125 $234,688 
Revolving loan under credit facility
50,000 — 
Finance obligations1
4,162 3,022 
Unsecured note payable176 299 
Total debt202,463 238,009 
Less: loan origination fees(2,287)(943)
Less: current portion(3,881)(17,311)
Total long-term debt, net of current portion$196,295 $219,755 
_______________
1    Represents failed sale-leaseback arrangements, and also in 2025, a consideration payable associated with acquired leases
Schedule of Maturities of Long-Term Debt
Future annual maturities of long-term debt as of December 31, 2025 are as follows:
(in thousands)
2026

3,881 
2027

5,670 
2028

7,500 
2029

11,250 
2030170,000 
Thereafter

4,162 
Total$202,463 
v3.25.4
Derivative Financial Instrument (Tables)
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Fair Value Derivative Instruments Included in Condensed Consolidated Balance Sheets
Designated as a Level 2 instrument within the fair value hierarchy, the fair value and effect of the derivative instrument included in our consolidated financial statements was as follows:
(in thousands)
Balance Sheets Classification
December 31, 2025December 31, 2024
Derivative instrument designated as cash flow hedge
Interest rate swap contractPrepaid expenses and other current assets$466 $953 
Interest rate swap contractOther long-term assets36 832 
Total derivative instrument designated as cash flow hedge$502 $1,785 
Schedule of Derivatives Instruments Effect on Condensed Consolidated Statement of Operations
Year Ended December 31,
(in thousands)Financial Statements Classification202520242023
Derivative instrument designated as cash flow hedge
Income (loss) recognized in other comprehensive income before reclassifications
Statements of Comprehensive Income
$(112)$1,661 $954 
Reclassification from accumulated other comprehensive income to earnings for the effective portion
Statements of Operations - Interest expense, net
(1,063)(1,745)(1,692)
Income tax benefit (expense)
Statements of Operations - Income tax expense
224 83 (10)
v3.25.4
Tax Receivable Agreements (Tables)
 12 Months Ended
Dec. 31, 2025
Other Liabilities Disclosure [Abstract]  
Schedule of Changes related and projected future payments to the TRAs
The changes related to our TRAs liability were as follows:
(in thousands)December 31, 2025December 31, 2024
Beginning balance
$627,834 $290,920 
Additions (reductions) to TRAs:
Exchange of Dutch Bros OpCo Class A common units for Class A common stock202,680 341,161 
TRAs payments
(4,698)— 
TRAs remeasurements 1
(4,767)(4,247)
Ending balance
$821,049 $627,834 
Less: current portion(7,696)(71)
TRAs liability, net of current portion
$813,353 $627,763 
_________________
1 Impact primarily related to state tax rates and adjustments from previous estimates upon finalization of the tax attributes subject to the TRA.
v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Expense (Benefit)
Our income before income taxes is domestic-sourced only, and was as follows for the periods presented:
Year Ended December 31,
(in thousands)202520242023
Income before income taxes
$135,623 $84,885 $16,919 
Our income tax expense consisted of the following:
Year Ended December 31,
(in thousands)202520242023
Current income taxes
Federal$200 $396 $193 
State and local
530 2,653 844 
Total current income taxes
730 3,049 1,037 
Deferred tax expense
Federal13,391 8,520 1,605 
State and local
4,227 6,866 4,325 
Total deferred income taxes
17,618 15,386 5,930 
Income tax expense
$18,348 $18,435 $6,967 
Schedule of Effective Income Tax Rate Reconciliation
Our effective income tax rate differs from the U.S. federal statutory income tax rate as itemized below:
Year Ended December 31,
202520242023
(dollars in thousands)
$
%
$
%
$
%
U.S. federal statutory income tax rate28,481 21.0 17,826 21.0 3,553 21.0 
Domestic state and local income taxes, net of federal effect 1
4,749 3.5 9,497 11.2 4,245 25.1 
Domestic federal:
Tax credits:
Tip credit(6,415)(4.7)(4,258)(5.0)(2,040)(12.1)
Other(243)(0.2)(149)(0.2)(138)(0.8)
Nontaxable and nondeductible items:
Income allocable to non-controlling interests not subject to tax(8,108)(6.0)(6,950)(8.2)(1,944)(11.5)
Stock compensation - (windfall) shortfall(3,267)(2.4)257 0.3 644 3.8 
Stock compensation - RSAs— — 40 — 2,385 14.1 
Section 162(m) compensation limitation1,461 1.1 — — 122 0.7 
TRA remeasurement(1,001)(0.7)(892)(1.0)(556)(3.3)
Tip credit addback1,380 1.0 884 1.0 423 2.5 
Other271 0.2 913 1.1 249 1.5 
Changes in valuation allowance
1,247 0.9 (157)(0.2)(57)(0.3)
Impact of TRA adjustments
359 0.2 965 1.2 (15)(0.1)
Other
(566)(0.4)459 0.5 96 0.6 
Total
18,348 13.5 18,435 21.7 6,967 41.2 
_________________
1 For the years ended December 31, 2025, 2024 and 2023, domestic state and local income taxes, net of federal effect primarily relate to the state of Oregon.
Schedule of Income Taxes Paid (Net Of Refunds)
Supplemental cash flow information related to leases is as follows for the periods presented:
Year Ended December 31,
(in thousands)202520242023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases$23,289 $22,053 $17,516 
Operating cash flows from operating leases1
25,316 22,127 17,167 
Financing cash flows from finance leases16,105 10,541 12,432 
Right-of-use assets obtained in exchange for lease obligations
Finance leases53,547 15,838 144,588 
Operating leases148,332 130,059 40,253 
_______________
1 For the year ended December 31, 2025, the amount presented is net of a $5.4 million tenant improvement allowance received from the landlord related to our Arizona headquarters office lease.
Our income taxes paid (net of refunds) consisted of the following:
Year Ended December 31,
(in thousands)202520242023
U.S. federal$54 $370 $239 
U.S. state and local total
943 1,884 1,492 
Total$996 $2,253 $1,731 
Income taxes paid (net of refunds) exceeded five percent of total income taxes paid (net of refunds) in the following jurisdictions:
Year Ended December 31,
(in thousands)202520242023
Tennessee*$1,276 *
Oregon545 263 773 
Texas393 217 395 
_________________
* Jurisdiction did not exceed the 5% threshold in the period presented.
Schedule of Components of Deferred Tax Assets
The components of our deferred tax assets are as follows1:
(in thousands)December 31, 2025December 31, 2024
Deferred tax assets
Investment in Dutch Bros OpCo
$833,598 $678,358 
Net operating loss carryforwards94,290 50,862 
Credit carryforwards16,056 9,399 
Charitable contribution carryforward3,030 1,505 
Other1,825 2,865 
Total deferred tax assets948,799 742,989 
Less: valuation allowance(2,228)(863)
Net deferred tax assets$946,571 $742,126 
_________________
1 Certain prior year balances have been reclassified to conform with current year presentation.
v3.25.4
Equity-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award The estimated grant date fair value of $132.96 was derived from inputs and assumptions utilized in the valuation model as follows:
Year Ended December 31,
20252024
Grant date stock price
$82.03 
N/A
Beginning average price1
$67.71 
N/A
Risk-free interest rate
4.2 %
N/A
Volatility
63.1 %
N/A
_________________
1 Beginning average price is calculated as the volume-weighted average daily closing stock price over the 30 trading days preceding the start of the PSU performance period.
Schedule of Activity of Company's Restricted Stock Units
RSU activity was as follows:
(in thousands, except per share amounts)Restricted Stock UnitsWeighted-average grant date fair value per share
Balance, December 31, 20241,211 $32.38 
New grants345 75.16 
Vested(521)34.71 
Forfeitures(193)40.74 
Balance, December 31, 2025842 $46.55 
Total release date fair value of vested equity awards for each of the three years in the period ended December 31, 2025 are presented below:
Year Ended December 31,
(in thousands, except per share amounts)202520242023
Awards/unitsW/A vest date fair valueAwards/unitsW/A vest date fair valueAwards/unitsWA vest date fair value
RSAs— $— 39,752 $30.99 37,373 $27.36 
RSUs39,730 76.31 3,825 32.25 6,185 27.16 
Schedule of PSU Activity
PSU activity was as follows:
(in thousands, except per share amounts)Performance - Based Stock UnitsWeighted-average grant date fair value per share
Balance, December 31, 2024— $— 
New grants63 132.96 
Forfeitures(8)132.96 
Balance, December 31, 202555 $132.96 
Schedule of Equity-Based Compensation
Equity-based compensation expense is recognized on a straight-line basis and is included in our consolidated statements of operations as follows:
Year Ended December 31,
(in thousands)202520242023
Cost of sales$2,136 $887 $— 
Selling, general, and administrative expenses15,886 10,595 39,222 
Total stock-based compensation expense
$18,022 $11,482 $39,222 
Schedule of Total Unrecognized Stock Based Compensation Related to Unvested Stock Awards
As of December 31, 2025, total unrecognized stock-based compensation related to unvested RSUs and PSUs was $30.4 million, which will be recognized as follows:
(in thousands)
2026$16,603 
202711,014 
20282,786 
Total unrecognized stock-based compensation$30,403 
v3.25.4
Non-Controlling Interests (Tables)
 12 Months Ended
Dec. 31, 2025
Noncontrolling Interest [Abstract]  
Schedule of Ownership Interest
The following table summarizes the ownership interest in Dutch Bros OpCo¹:
December 31, 2025
(units in thousands)
OpCo UnitsOwnership %
Dutch Bros OpCo Class A common units held by Dutch Bros Inc.
127,054 71.6 %
Dutch Bros OpCo Class A common units held by non-controlling interest holders2
50,481 28.4 %
Total Dutch Bros OpCo Class A common units outstanding177,535 100.0 %
_______________
1 Dutch Bros OpCo effected a recapitalization on February 7, 2025. For additional information, refer to NOTE 1 — Organization and Background.
2 Non-controlling interest ownership includes approximately 13 million Class A common units that were decoupled from Class B common shares; these units can be converted on a one-for-one basis to Class A common stock.
Schedule of Changes in Ownership
The following table summarizes the effect of changes in ownership of Dutch Bros OpCo on our equity for the periods presented:
Year Ended December 31,
(in thousands)202520242023
Net income attributable to Dutch Bros Inc.$79,842 $35,258 $1,718 
Other comprehensive income (loss):
Unrealized gain (loss) on derivative securities, effective portion, net of income tax impacts
(580)84 (269)
Additional paid-in capital:
Increase as a result of equity-based compensation
12,794 6,980 15,177 
Increase (decrease) as a result of common stock issuances pursuant to vesting of equity awards, net of stock withheld for tax
(8,850)1,743 (661)
Increase (decrease) as a result of the acquisition of Dutch Bros OpCo Class A common units
41,193 115,989 (158,152)
Total effect of changes in ownership interest on equity attributable to Dutch Bros Inc.$124,399 $160,054 $(142,187)
Schedule of Non-Controlling Interest Holders' Weighted-Average Ownership Percentage The non-controlling interest holders’ weighted-average ownership percentage were as follows for the periods presented:
Year Ended December 31,
202520242023
Weighted-average ownership percentage of non-controlling interest holders
29.4 %41.6 %62.8 %
Schedule of Payments to Noncontrolling Interests Such distributions paid to members were as follows for the periods presented, and no amounts were payable as of the periods then ended.
 
Year Ended December 31,
(in thousands)202520242023
Amounts paid to non-controlling interest holders
$6,867 $1,888 $— 
v3.25.4
Income Per Share (Tables)
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Basic and Diluted Net Income (Loss) Per Share
The following tables set forth the numerators and denominators used to compute basic and diluted net income per share of Class A and Class D common stock for the periods presented:
Year Ended December 31,
(in thousands)202520242023
Numerator:
Net income $117,275 $66,450 $9,952 
Less: Net income attributable to non-controlling interests
37,433 31,192 8,234 
Net income attributable to Dutch Bros Inc.
$79,842 $35,258 $1,718 
Year Ended December 31,
(in thousands, except per share amounts)202520242023
Basic net income per share attributable to common stockholders
Numerator:
Net income attributable to Dutch Bros Inc.
$79,842 $35,258 $1,718 
Denominator:
Weighted-average number of shares of Class A and Class D common stock outstanding - basic ¹
125,329 103,504 62,074 
Basic net income per share attributable to common stockholders ¹
$0.64 $0.34 $0.03 
_______________
1 Class D common shares were included in net income per share and weighted-average number of shares calculations in periods prior to June 2024. As of June 2024, all Class D common shares were converted to Class A common shares.
Year Ended December 31,
(in thousands, except per share amounts)202520242023
Diluted net income per share attributable to common stockholders
Numerator:
Undistributed net income for basic computation
$79,842 $35,258 $1,718 
Increase in net income attributable to common stockholders upon conversion of potentially dilutive instruments
92 110 — 
Allocation of undistributed net income
$79,934 $35,368 $1,718 
Denominator:
Number of shares used in basic computation125,329 103,504 62,074 
Add: weighted-average effect of dilutive securities
RSAs
— 12 — 
RSUs
435 613 — 
Weighted-average number of shares of Class A and Class D common stock outstanding used to calculate diluted net income per share ¹
125,764 104,129 62,074 
Diluted net income per share attributable to common stockholders ¹
$0.64 $0.34 $0.03 
_______________
1 Class D common shares were included in net income per share and weighted-average number of shares calculations in periods prior to June 2024. As of June 2024, all Class D common shares were converted to Class A common shares.
Schedule of Common Stock Equivalents were Excluded from Diluted Net Income (loss) Per Share
The following Class A common stock equivalents were excluded from diluted net income per share in the periods presented because they were anti-dilutive:
Year Ended December 31,
(in thousands)
202520242023
RSAs
— — 1,283 
RSUs
218 90 648 
PSUs51 — — 
Total anti-dilutive securities269 90 1,931 
v3.25.4
Related Party Transactions (Tables)
 12 Months Ended
Dec. 31, 2025
Related Party Transactions [Abstract]  
Schedule of Related Party Transactions
Related party transactions were as follows for the periods presented:
Year Ended December 31,
(in thousands)202520242023
Distributions and TRA payments to Co-Founder and Sponsor ¹$11,565 $1,888 $— 
Sales of Company Aircraft ²:
Sales price
— 9,545 — 
Net book value
— 8,243 — 
Gain on disposal of Aircraft
— 1,302 — 
Donations to Dutch Bros Foundation4,250 4,250 250 
_______________
1 See NOTE 11 — Tax Receivable Agreements and NOTE 14 — Non-Controlling Interests for further information.
2 In June 2024 and July 2024, respectively, we sold our airplane, and hangar and related equipment (collectively, the Aircraft), to our Co-Founder.
v3.25.4
Segment Reporting (Tables)
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Schedule of Financial Information for Reportable Segments
Financial information for our reportable segments was as follows for the periods presented:
 Year Ended December 31,
(in thousands)20252024 2023
Revenues
Company-operated shops$1,509,329 $1,165,830 $857,939 
Franchising and other128,830 115,185 107,837 
Total revenues1,638,159 1,281,015 965,776 
Cost of sales
Company-operated shops
Beverage, food & packaging390,331 296,752 230,133 
Labor costs405,932 315,805 230,505 
Occupancy & other costs251,106 191,372 140,895 
Pre-opening costs25,355 15,133 14,083 
Franchising and other29,736 30,100 31,378 
Segment cost of sales1
1,102,460 849,162 646,994 
Segment contribution
Company-operated shops436,605 346,768 242,323 
Franchising and other99,094 85,085 76,459 
Total segment contribution$535,699 $431,853 $318,782 
Segment depreciation and amortization
(111,753)(91,724)(67,486)
Selling, general and administrative(262,766)(234,036)(205,074)
Interest expense, net(28,305)(27,020)(32,321)
Other income, net
2,748 5,812 3,018 
Income before income taxes
$135,623 $84,885 $16,919 
__________________
1 Segment cost of sales for this presentation excludes the impact of depreciation and amortization.
v3.25.4
Organization and Background (Details)
$ in Millions
 12 Months Ended
Feb. 07, 2025
USD ($)
shares
Dec. 31, 2025
state
store
shares
Dec. 31, 2024
shares
May 31, 2024
shares
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]        
Number of stores | store   1,136    
Number of states in which entity operates | state   25    
Percentage of voting interest held   100.00%    
Consolidation, less than wholly owned subsidiary, parent ownership interest, changes, additional interest issued to parent | $ $ 3.5      
Number of shares issued in reorganization transaction (in shares) 1      
Class B common stock        
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]        
Reverse split transaction pursuant to OpCo recapitalization (in shares) 15,734      
Number of common stock surrendered (in shares)       23,000,000
Class C common stock        
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]        
Reverse split transaction pursuant to OpCo recapitalization (in shares) 1,220      
Class A common stock        
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]        
Issuance of Class A common stock sold pursuant to follow-on offering, net of offering costs (in shares)   11,300,000 45,400,000  
Conversion of stock, shares converted (in shares)     34,700,000  
Class D common stock        
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]        
Stock cancelled during period (in shares)   1,300,000 10,700,000  
Class A Common Units        
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]        
Conversion of stock, shares converted (in shares)   11,300,000    
Class A common units held by Dutch Bros Inc.        
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]        
Percentage of class A common units held by Dutch Bros.   71.60%    
Capital contribution (in shares) 51,942      
Class A common units held by Dutch Bros Inc. | Class A common stock        
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]        
Number of shares issued in reorganization transaction (in shares)   1 1  
Continuing LLC Equity Owners        
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]        
Voting interest held by noncontrolling interest   0.00%    
Continuing LLC Members        
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]        
Dutch Bros OpCo Class A common units held by non-controlling interest holders   28.40%    
Company-operated shops        
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]        
Number of stores | store   811    
Franchising        
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]        
Number of stores | store   325    
v3.25.4
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Property and Equipment (Details)
Dec. 31, 2025
Software  
Property, Plant and Equipment [Line Items]  
Useful life (in years) 3 years
Equipment and fixtures | Minimum  
Property, Plant and Equipment [Line Items]  
Useful life (in years) 3 years
Equipment and fixtures | Maximum  
Property, Plant and Equipment [Line Items]  
Useful life (in years) 7 years
Leasehold improvements | Minimum  
Property, Plant and Equipment [Line Items]  
Useful life (in years) 5 years
Leasehold improvements | Maximum  
Property, Plant and Equipment [Line Items]  
Useful life (in years) 15 years
Buildings | Minimum  
Property, Plant and Equipment [Line Items]  
Useful life (in years) 10 years
Buildings | Maximum  
Property, Plant and Equipment [Line Items]  
Useful life (in years) 39 years
v3.25.4
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details)
 12 Months Ended
Dec. 31, 2025
USD ($)
taxReceivableAgreement
renewal
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Property, Plant and Equipment [Line Items]      
Allowance for doubtful accounts | $ $ 0 $ 0  
Goodwill, impairment charges | $ $ 0 $ 0 $ 0
Contract with customer, loyalty rewards, term 180 days    
Contract with customer, redeemed loyalty rewards expiration term 180 days    
Contract with customer, birthday and other promotional awards expiration term 30 days    
Franchise agreement terms 10 years    
Number of tax receivable agreements | taxReceivableAgreement 2    
Tax benefits owed to pre-IPO unitholders (as a percentage) 85.00%    
RSUs      
Property, Plant and Equipment [Line Items]      
Vesting period (in years) 3 years    
RSUs | Share-Based Payment Arrangement, Tranche One      
Property, Plant and Equipment [Line Items]      
Vesting percentage 33.33%    
RSUs | Share-Based Payment Arrangement, Tranche Two      
Property, Plant and Equipment [Line Items]      
Vesting percentage 33.33%    
RSUs | Share-Based Payment Arrangement, Tranche Three      
Property, Plant and Equipment [Line Items]      
Vesting percentage 33.33%    
PSUs      
Property, Plant and Equipment [Line Items]      
Determination period, maximum (in days) 90 days    
Performance period (in years) 3 years    
Share-based compensation arrangement by share-based payment award, expiration period (in years) 3 years    
Minimum | PSUs      
Property, Plant and Equipment [Line Items]      
Stock to be received, percent of target amount 0.00%    
Maximum | PSUs      
Property, Plant and Equipment [Line Items]      
Stock to be received, percent of target amount 200.00%    
Software      
Property, Plant and Equipment [Line Items]      
Useful life (in years) 3 years    
Real Estate | Real Estate Lease, Five Year Renewal Option      
Property, Plant and Equipment [Line Items]      
Term of lease renewals 5 years    
Real Estate | Minimum      
Property, Plant and Equipment [Line Items]      
Initial terms of real estate leases 15 years    
Real Estate | Minimum | Real Estate Lease, Five Year Renewal Option      
Property, Plant and Equipment [Line Items]      
Number of renewal options | renewal 1    
Real Estate | Maximum      
Property, Plant and Equipment [Line Items]      
Initial terms of real estate leases 20 years    
Real Estate | Maximum | Real Estate Lease, Five Year Renewal Option      
Property, Plant and Equipment [Line Items]      
Number of renewal options | renewal 3    
v3.25.4
Revenue Recognition - Schedule of Disaggregates Revenue by Major Component (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]      
Total revenues $ 1,638,159 $ 1,281,015 $ 965,776
Company-operated shops      
Disaggregation of Revenue [Line Items]      
Total revenues 1,509,329 1,165,830 857,939
Franchising      
Disaggregation of Revenue [Line Items]      
Total revenues 122,046 109,610 101,907
Other      
Disaggregation of Revenue [Line Items]      
Total revenues $ 6,784 $ 5,575 $ 5,930
v3.25.4
Revenue Recognition - Schedule of Deferred Revenue (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]      
Total deferred revenue $ 64,576 $ 50,883 $ 37,025
Gift card and loyalty programs      
Disaggregation of Revenue [Line Items]      
Total deferred revenue 62,014 48,265  
Initial unearned franchise fees      
Disaggregation of Revenue [Line Items]      
Total deferred revenue $ 2,562 $ 2,618  
v3.25.4
Revenue Recognition - Schedule of Deferred Revenue Activity Related to the Company’s Gift Card and Loyalty Programs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Change In Contract With Customer, Liability [Roll Forward]    
Beginning balance $ 50,883 $ 37,025
Revenue deferred 567,005 419,107
Revenue recognized (553,256) (405,458)
Other deferred revenue, net (56) 209
Ending balance 64,576 50,883
Less: current portion (55,658) (42,868)
Deferred revenue, net of current portion $ 8,918 $ 8,015
v3.25.4
Revenue Recognition - Schedule of Deferred Revenue Liability (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Gift card redemptions      
Disaggregation of Revenue [Line Items]      
Deferred revenue recognized $ 8,072 $ 6,215 $ 5,149
Earned franchise fees      
Disaggregation of Revenue [Line Items]      
Deferred revenue recognized $ 430 $ 450 $ 454
v3.25.4
Revenue Recognition - Schedule of Future Recognition of Unearned Franchise Fees (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Unearned franchise fees, future recognition $ 2,562
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, expected timing of satisfaction, period 1 year
Unearned franchise fees, future recognition $ 427
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, expected timing of satisfaction, period 1 year
Unearned franchise fees, future recognition $ 382
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, expected timing of satisfaction, period 1 year
Unearned franchise fees, future recognition $ 333
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, expected timing of satisfaction, period 1 year
Unearned franchise fees, future recognition $ 288
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2030-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, expected timing of satisfaction, period 1 year
Unearned franchise fees, future recognition $ 256
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2031-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, expected timing of satisfaction, period
Unearned franchise fees, future recognition $ 876
v3.25.4
Organization Realignment and Restructurings - Narrative (Details) - Organization Realignment and Restructuring - USD ($)
$ in Millions
 12 Months Ended 14 Months Ended
Dec. 31, 2025
Mar. 31, 2025
May 13, 2025
Restructuring Cost and Reserve [Line Items]      
Restructuring and related cost, incurred cost $ 7.0 $ 19.1  
Restructuring and related cost, expected cost     $ 9.0
Total employee-related costs      
Restructuring Cost and Reserve [Line Items]      
Restructuring and related cost, incurred cost   16.6  
Total other costs      
Restructuring Cost and Reserve [Line Items]      
Restructuring and related cost, incurred cost   $ 2.5  
v3.25.4
Organization Realignment and Restructurings - Schedule of Restructuring Related Charges (Details) - Organization Realignment and Restructuring - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Restructuring Cost and Reserve [Line Items]    
Total other costs $ 631 $ 2,327
Total restructuring costs incurred $ 8,238 17,876
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Selling, General and Administrative Expense  
Relocation and travel costs    
Restructuring Cost and Reserve [Line Items]    
Total employee-related costs $ 3,288 11,403
Total restructuring costs incurred 3,288  
Termination benefits    
Restructuring Cost and Reserve [Line Items]    
Total employee-related costs 4,319 4,146
Total restructuring costs incurred 4,319  
Total employee-related costs    
Restructuring Cost and Reserve [Line Items]    
Total employee-related costs 7,607 15,549
Total restructuring costs incurred 7,607  
Duplicate rent    
Restructuring Cost and Reserve [Line Items]    
Total other costs 244 461
Total restructuring costs incurred 244  
Consulting    
Restructuring Cost and Reserve [Line Items]    
Total other costs 387 $ 55
Total restructuring costs incurred $ 387  
v3.25.4
Organization Realignment and Restructurings -Schedule of Restructuring Liability (Details) - Organization Realignment and Restructuring - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Restructuring Reserve [Roll Forward]    
Beginning balance $ 2,781  
Charges 8,238 $ 17,876
Cash Payments (8,895)  
Ending balance 2,124 2,781
Relocation and travel costs    
Restructuring Reserve [Roll Forward]    
Beginning balance 698  
Charges 3,288  
Cash Payments (3,818)  
Ending balance 168 698
Termination benefits    
Restructuring Reserve [Roll Forward]    
Beginning balance 2,028  
Charges 4,319  
Cash Payments (4,400)  
Ending balance 1,947 2,028
Total employee-related costs    
Restructuring Reserve [Roll Forward]    
Beginning balance 2,726  
Charges 7,607  
Cash Payments (8,218)  
Ending balance 2,115 2,726
Duplicate rent    
Restructuring Reserve [Roll Forward]    
Beginning balance 0  
Charges 244  
Cash Payments (244)  
Ending balance 0 0
Consulting    
Restructuring Reserve [Roll Forward]    
Beginning balance 55  
Charges 387  
Cash Payments (433)  
Ending balance 9 55
Total other costs    
Restructuring Reserve [Roll Forward]    
Beginning balance 55  
Charges 631  
Cash Payments (677)  
Ending balance $ 9 $ 55
v3.25.4
Supplemental Financial Information - Schedule of Inventories, Net (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Supplemental Financial Information [Abstract]    
Raw materials $ 25,516 $ 14,594
Finished goods 23,401 21,894
Total inventories $ 48,917 $ 36,488
v3.25.4
Supplemental Financial Information - Schedule of Other current liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Supplemental Financial Information [Abstract]    
Accrued compensation and benefits $ 50,314 $ 49,778
Sales, use and property taxes payable 15,354 4,667
Other accrued liabilities 33,505 28,916
Other current liabilities $ 99,173 $ 83,361
v3.25.4
Supplemental Financial Information - Schedule of Employer Matching Contributions (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Defined Contribution Plan Disclosure [Line Items]      
Total employer matching contributions $ 3,471 $ 2,971 $ 2,341
Cost of sales      
Defined Contribution Plan Disclosure [Line Items]      
Total employer matching contributions 45 62 60
Selling, general and administrative      
Defined Contribution Plan Disclosure [Line Items]      
Total employer matching contributions $ 3,426 $ 2,909 $ 2,281
v3.25.4
Supplemental Financial Information - Schedule of Advertising Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Advertising Expense [Line Items]      
Total advertising expense $ 39,022 $ 39,210 $ 29,899
Cost of sales      
Advertising Expense [Line Items]      
Total advertising expense 26,270 21,897 18,946
Selling, general and administrative      
Advertising Expense [Line Items]      
Total advertising expense $ 12,752 $ 17,313 $ 10,953
v3.25.4
Supplemental Financial Information - Narrative (Details)
 12 Months Ended
Dec. 31, 2025
Supplemental Financial Information [Abstract]  
Company percentage match of employee contributions 100.00%
Percent of employee's gross pay matched 4.00%
v3.25.4
Property and Equipment - Schedule of Property and Equipment, Net (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 1,086,315 $ 860,541
Less: accumulated depreciation (261,813) (176,570)
Property and equipment, net $ 824,502 683,971
Software    
Property, Plant and Equipment [Line Items]    
Useful Life (Years) 3 years  
Property and equipment, gross $ 14,630 10,666
Equipment and fixtures    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 305,116 229,307
Equipment and fixtures | Minimum    
Property, Plant and Equipment [Line Items]    
Useful Life (Years) 3 years  
Equipment and fixtures | Maximum    
Property, Plant and Equipment [Line Items]    
Useful Life (Years) 7 years  
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 68,023 54,535
Leasehold improvements | Minimum    
Property, Plant and Equipment [Line Items]    
Useful Life (Years) 5 years  
Leasehold improvements | Maximum    
Property, Plant and Equipment [Line Items]    
Useful Life (Years) 15 years  
Buildings    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 616,299 487,060
Buildings | Minimum    
Property, Plant and Equipment [Line Items]    
Useful Life (Years) 10 years  
Buildings | Maximum    
Property, Plant and Equipment [Line Items]    
Useful Life (Years) 39 years  
Land    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 7,022 7,022
Construction-in-progress    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 75,225 $ 71,951
v3.25.4
Property and Equipment - Schedule of Property and Equipment Depreciation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]      
Total depreciation expense $ 86,189 $ 64,936 $ 44,441
Cost of sales      
Property, Plant and Equipment [Line Items]      
Total depreciation expense 82,850 63,707 42,807
Selling, general and administrative      
Property, Plant and Equipment [Line Items]      
Total depreciation expense $ 3,339 $ 1,229 $ 1,634
v3.25.4
Other Long-Term Assets - Schedule of Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Less: accumulated amortization $ (25,539) $ (24,102)
Reacquired franchise rights, net 1,510 2,947
Goodwill 21,629 21,629
Other 2,385 2,592
Total other long-term assets, net 25,524 27,168
Franchise Rights    
Intangible Asset, Acquired, Finite-Lived [Line Items]    
Reacquired franchise rights $ 27,049 $ 27,049
Weighted-average amortization period (in years) 2 years 11 months 4 days 2 years 11 months 8 days
v3.25.4
Other Long-Term Assets - Schedule of Intangible Assets Amortization Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cost of sales      
Finite-Lived Intangible Assets [Line Items]      
Cost of sales $ 1,437 $ 2,468 $ 3,389
v3.25.4
Other Long-Term Assets - Schedule of Estimated Future Amortization Expense (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Finite-Lived Intangible Assets [Line Items]    
Reacquired franchise rights, net $ 1,510 $ 2,947
Reacquired Franchise Rights    
Finite-Lived Intangible Assets [Line Items]    
2026 682  
2027 383  
2028 247  
2029 153  
2030 42  
Thereafter 3  
Reacquired franchise rights, net $ 1,510  
v3.25.4
Leases - Schedule of Finance and Operating Lease Right-of-Use Assets and Lease Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Assets [Abstract]    
Finance lease, right-of-use asset $ 406,381 $ 374,623
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Lease right-of-use assets, net Lease right-of-use assets, net
Operating lease, right-of-use asset $ 448,958 $ 315,256
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Lease right-of-use assets, net Lease right-of-use assets, net
Lease right-of-use assets, net $ 855,339 $ 689,879
Lease Liability, Current [Abstract]    
Finance lease, liability, current $ 17,298 $ 13,256
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Current portion of lease liabilities Current portion of lease liabilities
Operating lease, liability, current $ 19,168 $ 13,979
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Current portion of lease liabilities Current portion of lease liabilities
Current portion of lease liabilities $ 36,466 $ 27,235
Lease Liability, Noncurrent [Abstract]    
Finance lease, liability, noncurrent $ 402,697 $ 369,297
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Lease liabilities, net of current portion Lease liabilities, net of current portion
Operating lease, liability, noncurrent $ 449,683 $ 309,311
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Lease liabilities, net of current portion Lease liabilities, net of current portion
Lease liabilities, net of current portion $ 852,380 $ 678,608
Total lease liabilities $ 888,846 $ 705,843
v3.25.4
Leases - Schedule of Components of Lease Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Finance lease costs      
Interest on lease liabilities $ 23,289 $ 22,053 $ 17,516
Total finance lease costs 50,796 47,654 38,821
Operating lease costs      
Total operating lease costs 43,664 30,349 19,440
Variable lease costs 9,652 6,874 5,216
Total lease costs 104,112 84,877 63,477
Cost of sales      
Finance lease costs      
Amortization of right-of-use assets 27,467 25,551 21,290
Operating lease costs      
Total operating lease costs 40,829 28,703 19,385
Selling, general and administrative      
Finance lease costs      
Amortization of right-of-use assets 40 50 15
Operating lease costs      
Total operating lease costs $ 2,835 $ 1,646 $ 55
v3.25.4
Leases - Schedule of Future Minimum Lease Payments (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Finance    
2026 $ 41,575  
2027 40,644  
2028 41,786  
2029 42,715  
2030 43,118  
Thereafter 431,664  
Total 641,502  
Less: imputed interest (221,507)  
Present value of minimum lease payments 419,995  
Less: current portion (17,298) $ (13,256)
Lease liabilities, net of current portion 402,697 369,297
Operating    
2026 35,367  
2027 46,409  
2028 45,965  
2029 46,706  
2030 47,384  
Thereafter 544,593  
Total 766,424  
Less: imputed interest (297,573)  
Present value of minimum lease payments 468,851  
Less: current portion (19,168) (13,979)
Lease liabilities, net of current portion $ 449,683 $ 309,311
v3.25.4
Leases - Schedule of Lease Terms and Discount Rates for Finance and Operating Leases (Details)
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
Weighted-average remaining lease term (years), Finance leases 14 years 6 months 15 years 3 months 18 days
Weighted-average remaining lease term (years), Operating leases 15 years 6 months 15 years 6 months
Weighted-average discount rate (percentages), Finance leases 6.00% 6.00%
Weighted-average discount rate (percentages), Operating leases 6.30% 5.90%
v3.25.4
Leases - Schedule of Supplemental Cash Flow Information Regarding Leases (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash paid for amounts included in the measurement of lease liabilities      
Operating cash flows from finance leases $ 23,289 $ 22,053 $ 17,516
Operating cash flows from operating leases 25,316 22,127 17,167
Financing cash flows from finance leases 16,105 10,541 12,432
Right-of-use assets obtained in exchange for lease obligations      
Finance leases 53,547 15,838 144,588
Operating leases 148,332 $ 130,059 $ 40,253
Payments for tenant improvements $ 5,400    
v3.25.4
Debt - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
May 29, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Line of Credit Facility [Line Items]        
Proceeds from line of credit   $ 0 $ 2,449 $ 90,000
Loss on extinguishment of debt   809 0 $ 0
Debt issuance and other costs   2,287 943  
Total   202,463    
The 2025 & 2022 Credit Facilities | Line of Credit        
Line of Credit Facility [Line Items]        
Loss on extinguishment of debt $ 2,000      
The 2025 Credit Facility | Line of Credit        
Line of Credit Facility [Line Items]        
Borrowing capacity 650,000      
Additional borrowing capacity $ 230,000      
Percentage of additional borrowing capacity 80.00%      
Fees to intermediaries and other costs $ 1,200      
Debt issuance and other costs 1,500      
The 2025 Credit Facility | Line of Credit | Revolving Credit Facility        
Line of Credit Facility [Line Items]        
Borrowing capacity 500,000      
Proceeds from line of credit $ 50,000      
Total   50,000    
Remaining borrowing capacity   435,800    
Line of credit   $ 50,000 0  
Interest rate on term loan   5.22%    
The 2025 Credit Facility | Line of Credit | Revolving Credit Facility | Minimum        
Line of Credit Facility [Line Items]        
Commitment fee percentage 0.20%      
The 2025 Credit Facility | Line of Credit | Revolving Credit Facility | Maximum        
Line of Credit Facility [Line Items]        
Commitment fee percentage 0.45%      
The 2025 Credit Facility | Line of Credit | Secured Debt        
Line of Credit Facility [Line Items]        
Debt instrument, face amount $ 150,000      
Proceeds from line of credit 150,000      
The 2025 Credit Facility | Line of Credit | Bridge Loan        
Line of Credit Facility [Line Items]        
Borrowing capacity 20,000      
The 2025 Credit Facility | Line of Credit | Letter of Credit        
Line of Credit Facility [Line Items]        
Borrowing capacity 100,000      
Line of credit   $ 14,200    
The 2025 Credit Facility | Secured Debt        
Line of Credit Facility [Line Items]        
Total   148,100    
Line of credit   $ 148,125 $ 234,688  
The 2022 Credit Facility | Line of Credit        
Line of Credit Facility [Line Items]        
Deferred debt issuance cost, writeoff $ 800      
v3.25.4
Debt - Schedule of Debt Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
May 29, 2025
Dec. 31, 2024
Line of Credit Facility [Line Items]      
Finance obligations $ 4,162   $ 3,022
Total debt 202,463   238,009
Less: loan origination fees (2,287)   (943)
Less: current portion (3,881)   (17,311)
Total long-term debt, net of current portion 196,295   219,755
Secured Debt | The 2025 Credit Facility      
Line of Credit Facility [Line Items]      
Term loan under credit facility 148,125   234,688
Line of Credit | The 2025 Credit Facility      
Line of Credit Facility [Line Items]      
Less: loan origination fees   $ (1,500)  
Line of Credit | The 2025 Credit Facility | Revolving Credit Facility      
Line of Credit Facility [Line Items]      
Term loan under credit facility 50,000   0
Unsecured Debt      
Line of Credit Facility [Line Items]      
Unsecured note payable $ 176   $ 299
v3.25.4
Debt - Schedule of Maturities of Long-Term Debt (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Debt Disclosure [Abstract]  
2026 $ 3,881
2027 5,670
2028 7,500
2029 11,250
2030 170,000
Thereafter 4,162
Total $ 202,463
v3.25.4
Derivative Financial Instrument - Narrative (Details) - Designated as Hedging Instrument - Cash Flow Hedging - Interest rate swap contract
$ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Interest rate swap outstanding $ 59.1
Fixed interest rate 2.67%
Variable interest rate 3.72%
Expected reclassification of gain within the next twelve months $ 0.5
v3.25.4
Derivative Financial Instrument - Schedule of Fair Value Derivative Instruments Included in Condensed Consolidated Balance Sheets (Details) - Designated as Hedging Instrument - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Total derivative instrument designated as cash flow hedge $ 502 $ 1,785
Interest rate swap contract    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Prepaid expenses and other current assets 466 953
Other long-term assets $ 36 $ 832
v3.25.4
Derivative Financial Instrument - Schedule of Derivatives Instruments Effect on Condensed Consolidated Statement of Operations (Details) - Interest rate swap contract - Designated as Hedging Instrument - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Derivative Instruments, Gain (Loss) [Line Items]      
Income (loss) recognized in other comprehensive income before reclassifications $ (112) $ 1,661 $ 954
Interest Expense      
Derivative Instruments, Gain (Loss) [Line Items]      
Reclassification from accumulated other comprehensive income to earnings for the effective portion (1,063) (1,745) (1,692)
Income Tax Expense      
Derivative Instruments, Gain (Loss) [Line Items]      
Income tax benefit (expense) $ 224 $ 83 $ (10)
v3.25.4
Tax Receivable Agreements - Schedule of Changes related to the TRAs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Tax Receivable Agreement, Liability [Roll Forward]    
Beginning balance $ 627,834 $ 290,920
Exchange of Dutch Bros OpCo Class A common units for Class A common stock 202,680 341,161
TRAs payments (4,698) 0
TRAs remeasurements (4,767) (4,247)
Ending balance 821,049 627,834
Less: current portion (7,696) (71)
Tax receivable agreements liability, net of current portion $ 813,353 $ 627,763
v3.25.4
Income Taxes - Schedule of Income From Continuing Operations Before Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Income before income taxes $ 135,623 $ 84,885 $ 16,919
v3.25.4
Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current income taxes      
Federal $ 200 $ 396 $ 193
State and local 530 2,653 844
Total current income taxes 730 3,049 1,037
Deferred tax expense      
Federal 13,391 8,520 1,605
State and local 4,227 6,866 4,325
Total deferred income taxes 17,618 15,386 5,930
Income tax expense $ 18,348 $ 18,435 $ 6,967
v3.25.4
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
$      
U.S. federal statutory income tax rate $ 28,481 $ 17,826 $ 3,553
Domestic state and local income taxes, net of federal effect 4,749 9,497 4,245
Tip credit (6,415) (4,258) (2,040)
Other (243) (149) (138)
Income allocable to non-controlling interests not subject to tax (8,108) (6,950) (1,944)
Stock compensation - (windfall) shortfall (3,267) 257 644
Stock compensation - RSAs 0 40 2,385
Section 162(m) compensation limitation 1,461 0 122
TRA remeasurement (1,001) (892) (556)
Tip credit addback 1,380 884 423
Other 271 913 249
Changes in valuation allowance 1,247 (157) (57)
Impact of TRA adjustments 359 965 (15)
Other (566) 459 96
Income tax expense $ 18,348 $ 18,435 $ 6,967
%      
U.S. federal statutory income tax rate 21.00% 21.00% 21.00%
Domestic state and local income taxes, net of federal effect 3.50% 11.20% 25.10%
Tip credit (4.70%) (5.00%) (12.10%)
Other (0.20%) (0.20%) (0.80%)
Income allocable to non-controlling interests not subject to tax (6.00%) (8.20%) (11.50%)
Stock compensation - (windfall) shortfall (2.40%) 0.30% 3.80%
Stock compensation - RSAs 0.00% 0.00% 14.10%
Section 162(m) compensation limitation 1.10% 0.00% 0.70%
TRA remeasurement (0.70%) (1.00%) (3.30%)
Tip credit addback 1.00% 1.00% 2.50%
Other 0.20% 1.10% 1.50%
Changes in valuation allowance 0.90% (0.20%) (0.30%)
Impact of TRA adjustments 0.20% 1.20% (0.10%)
Other (0.40%) 0.50% 0.60%
Total 13.50% 21.70% 41.20%
v3.25.4
Income Taxes - Schedule of Income Taxes Paid Net of Refunds (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Valuation Allowance [Line Items]      
U.S. federal $ 54 $ 370 $ 239
U.S. state and local total 943 1,884 1,492
Income taxes paid 996 2,253 1,731
Tennessee      
Valuation Allowance [Line Items]      
U.S. state and local total   1,276  
Oregon      
Valuation Allowance [Line Items]      
U.S. state and local total 545 263 773
Texas      
Valuation Allowance [Line Items]      
U.S. state and local total $ 393 $ 217 $ 395
v3.25.4
Income Taxes - Schedule of Components of Deferred Tax Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Income Tax Disclosure [Abstract]    
Investment in Dutch Bros OpCo $ 833,598 $ 678,358
Net operating loss carryforwards 94,290 50,862
Credit carryforwards 16,056 9,399
Charitable contribution carryforward 3,030 1,505
Other 1,825 2,865
Total deferred tax assets 948,799 742,989
Less: valuation allowance (2,228) (863)
Net deferred tax assets $ 946,571 $ 742,126
v3.25.4
Income Taxes - Narrative (Details) - USD ($)
shares in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Valuation Allowance [Line Items]      
Deferred tax liabilities $ 0 $ 0  
Deferred tax asset, increase related to conversion of units 221,700,000    
Exchange of Dutch Bros OpCo Class A common units for Class A common stock 202,680,000 341,161,000  
Tax receivable agreement 821,049,000 627,834,000 $ 290,920,000
Income tax interest and penalties accrued 0    
Unrecognized tax benefits 0 $ 0  
Domestic Tax Authority      
Valuation Allowance [Line Items]      
Operating loss carryforward 386,900,000    
Tax credit carryforward 16,100,000    
State and Local Jurisdiction      
Valuation Allowance [Line Items]      
Operating loss carryforward 248,400,000    
Tax credit carryforward 0    
Operating loss carryforward subject to expiration 176,600,000    
Operating loss carryforward not subject to expiration $ 71,800,000    
Class A common stock      
Valuation Allowance [Line Items]      
Conversion of stock, shares converted (in shares)   34.7  
Class A Common Units      
Valuation Allowance [Line Items]      
Conversion of stock, shares converted (in shares) 11.3    
v3.25.4
Equity-Based Compensation - Narrative (Details)
 12 Months Ended
Dec. 31, 2025
RSUs & PSUs  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Vesting period (in years) 3 years
RSUs & PSUs | Vesting Schedule 1 | Share-Based Payment Arrangement, Tranche One  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Vesting percentage 33.33%
RSUs & PSUs | Vesting Schedule 1 | Share-Based Payment Arrangement, Tranche Two  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Vesting percentage 33.33%
RSUs & PSUs | Vesting Schedule 1 | Share-Based Payment Arrangement, Tranche Three  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Vesting percentage 33.33%
RSUs & PSUs | Vesting Schedule 2 | Share-Based Payment Arrangement, Tranche One  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Vesting percentage 50.00%
RSUs & PSUs | Vesting Schedule 2 | Share-Based Payment Arrangement, Tranche Two  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Vesting percentage 50.00%
RSUs & PSUs | Vesting Schedule 3  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Vesting period (in years) 3 years
Vesting percentage 100.00%
Determination period, maximum (in days) 90 days
RSUs  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Vesting period (in years) 3 years
RSUs | Share-Based Payment Arrangement, Tranche One  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Vesting percentage 33.33%
RSUs | Share-Based Payment Arrangement, Tranche Two  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Vesting percentage 33.33%
RSUs | Share-Based Payment Arrangement, Tranche Three  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Vesting percentage 33.33%
v3.25.4
Equity-Based Compensation - Schedule of Grant Date Fair Value and Assumptions Utilized (Details) - PSUs
 12 Months Ended
Dec. 31, 2025
$ / shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Estimated grant date fair value (in dollars per share) $ 132.96
Grant date stock price (in dollars per share) 82.03
Beginning average price (in dollars per share) $ 67.71
Share based compensation arrangement, Risk-free interest rate 4.20%
Share based compensation arrangement, expected volatility rate 63.10%
v3.25.4
Equity-Based Compensation - Schedule of Activity of Company's Restricted Stock and Restricted Stock Units (Details)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
$ / shares
shares
Dec. 31, 2024
USD ($)
$ / shares
shares
Dec. 31, 2023
USD ($)
$ / shares
RSUs      
Shares      
Beginning balance (in shares) | shares 1,211    
New grants (in shares) | shares 345    
Vested (in shares) | shares (521)    
Forfeitures (in shares) | shares (193)    
Ending balance (in shares) | shares 842 1,211  
Weighted-average grant date fair value per share      
Beginning balance (in dollars per share) $ 32.38    
Estimated grant date fair value (in dollars per share) 75.16    
Vested (in dollars per share) 34.71    
Forfeitures (in dollars per share) 40.74    
Ending balance (in dollars per share) $ 46.55 $ 32.38  
Fair value of vested share-based payment awards | $ $ 39,730 $ 3,825 $ 6,185
Weighted-average vest date fair value per share (in dollars per share) 76.31 32.25 27.16
RSAs      
Weighted-average grant date fair value per share      
Fair value of vested share-based payment awards | $ $ 0 $ 39,752 $ 37,373
Weighted-average vest date fair value per share (in dollars per share) 0 30.99 27.36
v3.25.4
Equity-Based Compensation - Schedule of PSU Activity (Details) - PSUs
shares in Thousands
 12 Months Ended
Dec. 31, 2025
$ / shares
shares
Shares  
Beginning balance (in shares) | shares 0
New grants (in shares) | shares 63
Forfeitures (in shares) | shares (8)
Ending balance (in shares) | shares 55
Weighted-average grant date fair value per share  
Beginning balance (in dollars per share) | $ / shares $ 0
Estimated grant date fair value (in dollars per share) | $ / shares 132.96
Forfeitures (in dollars per share) | $ / shares 132.96
Ending balance (in dollars per share) | $ / shares $ 132.96
v3.25.4
Equity-Based Compensation - Schedule of Equity-Based Compensation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Class of Stock [Line Items]      
Total stock-based compensation expense $ 18,022 $ 11,482 $ 39,222
Cost of sales      
Class of Stock [Line Items]      
Total stock-based compensation expense 2,136 887 0
Selling, general and administrative      
Class of Stock [Line Items]      
Total stock-based compensation expense $ 15,886 $ 10,595 $ 39,222
v3.25.4
Equity-Based Compensation - Schedule of Total Unrecognized Stock Based Compensation Related to Unvested Stock Awards (Details) - RSUs
$ in Thousands
Dec. 31, 2025
USD ($)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
2026 $ 16,603
2027 11,014
2028 2,786
Total unrecognized stock-based compensation $ 30,403
v3.25.4
Non-Controlling Interests - Narrative (Details) - shares
Dec. 31, 2025
Feb. 07, 2025
Noncontrolling Interest [Line Items]    
Number of shares issued in reorganization transaction (in shares)   1
Class A common stock | Public Stock Offering - Shares From Continuing Members    
Noncontrolling Interest [Line Items]    
Number of shares issued in reorganization transaction (in shares) 1  
v3.25.4
Non-Controlling Interests - Schedule of Ownership Interest (Details) - shares
Dec. 31, 2025
Feb. 07, 2025
Dec. 31, 2024
Noncontrolling Interest [Line Items]      
Unit conversion ratio (in shares)   1  
Class A common stock | Public Stock Offering - Shares From Continuing Members      
Noncontrolling Interest [Line Items]      
Unit conversion ratio (in shares) 1    
Dutch Bros OpCo Class A common units held by Dutch Bros Inc.      
Noncontrolling Interest [Line Items]      
Common units outstanding (in units) 127,054,000    
Percentage of class A common units held by Dutch Bros. 71.60%    
Dutch Bros OpCo Class A common units held by Dutch Bros Inc. | Class A common stock      
Noncontrolling Interest [Line Items]      
Unit conversion ratio (in shares) 1   1
Dutch Bros OpCo Class A common units held by non-controlling interest holders      
Noncontrolling Interest [Line Items]      
Common units outstanding (in units) 50,481,000    
Dutch Bros OpCo Class A common units held by non-controlling interest holders 28.40%    
Dutch Bros OpCo Class A common units held by non-controlling interest holders | Class A common stock      
Noncontrolling Interest [Line Items]      
Noncontrolling interest, shares decoupled (in shares) 13,000,000    
Total Dutch Bros OpCo Class A common units outstanding      
Noncontrolling Interest [Line Items]      
Common units outstanding (in units) 177,535,000    
Ownership % 100.00%    
v3.25.4
Non-Controlling Interests - Schedule of Changes in Ownership (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Noncontrolling Interest [Line Items]      
Net income attributable to Dutch Bros Inc. $ 79,842 $ 35,258 $ 1,718
Other comprehensive income (loss):      
Unrealized gain (loss) on derivative securities, effective portion, net of income tax impacts (1,059) (339) (965)
Additional paid-in capital:      
Increase as a result of equity-based compensation 12,794 6,980 15,177
Increase (decrease) as a result of common stock issuances pursuant to vesting of equity awards, net of stock withheld for tax (8,850) 1,743 (661)
Increase (decrease) as a result of the acquisition of Dutch Bros OpCo Class A common units 41,193 115,989 (158,152)
Total effect of changes in ownership interest on equity attributable to Dutch Bros Inc. 124,399 160,054 (142,187)
Accumulated Other Comprehensive Income      
Other comprehensive income (loss):      
Unrealized gain (loss) on derivative securities, effective portion, net of income tax impacts $ (580) $ 84 $ (269)
v3.25.4
Non-Controlling Interests - Schedule of Non-Controlling Interest Holders' Weighted-Average Ownership percentage (Details)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Noncontrolling Interest [Abstract]      
Weighted-average ownership percentage of non-controlling interest holders 29.40% 41.60% 62.80%
v3.25.4
Non-Controlling Interests - Schedule of Distributions to Noncontrolling Interests (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Noncontrolling Interest [Abstract]      
Amounts paid to non-controlling interest holders $ 6,867 $ 1,888 $ 0
v3.25.4
Income Per Share - Schedule of Reconciliation of Numerator for Income (Loss) Per Share (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Earnings Per Share [Abstract]      
Net income $ 117,275 $ 66,450 $ 9,952
Less: Net income attributable to non-controlling interests 37,433 31,192 8,234
Net income attributable to Dutch Bros Inc. $ 79,842 $ 35,258 $ 1,718
v3.25.4
Income Per Share - Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Numerator:      
Undistributed net income for basic computation $ 79,842 $ 35,258 $ 1,718
Increase in net income attributable to common stockholders upon conversion of potentially dilutive instruments 92 110 0
Allocation of undistributed net income $ 79,934 $ 35,368 $ 1,718
Denominator:      
Number of shares used in basic computation (in shares) [1] 125,329 103,504 62,074
Weighted-average number of shares of Class A and Class D common stock outstanding used to calculate diluted net income per share (in shares) [1] 125,764 104,129 62,074
Basic net income per share attributable to common stockholders (in dollars per share) [1] $ 0.64 $ 0.34 $ 0.03
Diluted net income per share attributable to common stockholders (in dollars per share) [1] $ 0.64 $ 0.34 $ 0.03
RSAs      
Denominator:      
Weighted-average effect of dilutive securities, restricted stock (in shares) 0 12 0
RSUs      
Denominator:      
Weighted-average effect of dilutive securities, restricted stock (in shares) 435 613 0
[1]
1 Class D common shares were included in net income per share and weighted-average number of shares calculations in periods prior to June 2024. As of June 2024, all Class D common shares were converted to Class A common shares.
v3.25.4
Income Per Share - Schedule of Common Stock Equivalents were Excluded from Diluted Net Income (Loss) Per Share (Details) - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]      
Total anti-dilutive securities (in shares) 269 90 1,931
RSAs      
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]      
Total anti-dilutive securities (in shares) 0 0 1,283
RSUs      
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]      
Total anti-dilutive securities (in shares) 218 90 648
PSUs      
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]      
Total anti-dilutive securities (in shares) 51 0 0
v3.25.4
Commitments and Contingencies (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Other Commitments [Line Items]      
Tax receivable agreement, contractually committed amount, percentage 85.00%    
Tax receivable agreement $ 821,049 $ 627,834 $ 290,920
Property Lease Guarantee      
Other Commitments [Line Items]      
Guarantor obligation in franchise lease payment $ 7,800 $ 8,200  
v3.25.4
Related Party Transactions (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Related Party Transaction [Line Items]      
Distributions and TRA payments to Co-Founder and Sponsor $ 6,867 $ 1,888 $ 0
Related Party      
Related Party Transaction [Line Items]      
Distributions and TRA payments to Co-Founder and Sponsor 11,565 1,888 0
Sales price 0 9,545 0
Net book value 0 8,243 0
Gain on disposal of Aircraft 0 1,302 0
Donations to Dutch Bros Foundation $ 4,250 $ 4,250 $ 250
v3.25.4
Segment Reporting - Narrative (Details)
 12 Months Ended
Dec. 31, 2025
segment
Segment Reporting [Abstract]  
Number of operating segments 2
Reportable segments not disclosed segments
v3.25.4
Segment Reporting - Schedule of Financial Information for Reportable Segments (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenues $ 1,638,159 $ 1,281,015 $ 965,776
Cost of sales 1,214,213 940,886 714,480
Segment depreciation and amortization (115,133) (93,005) (69,135)
Selling, general and administrative (262,766) (234,036) (205,074)
Interest expense, net (28,305) (27,020) (32,321)
Other income, net 2,748 5,812 3,018
Income before income taxes 135,623 84,885 16,919
Operating Segments      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenues 1,638,159 1,281,015 965,776
Cost of sales 1,102,460 849,162 646,994
Segment contribution 535,699 431,853 318,782
Segment depreciation and amortization (111,753) (91,724) (67,486)
Company-operated shops      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenues 1,509,329 1,165,830 857,939
Company-operated shops | Operating Segments      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenues 1,509,329 1,165,830 857,939
Segment contribution 436,605 346,768 242,323
Company-operated shops | Operating Segments | Beverage, food & packaging      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Cost of sales 390,331 296,752 230,133
Company-operated shops | Operating Segments | Labor costs      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Cost of sales 405,932 315,805 230,505
Company-operated shops | Operating Segments | Occupancy & other costs      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Cost of sales 251,106 191,372 140,895
Company-operated shops | Operating Segments | Pre-opening costs      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Cost of sales 25,355 15,133 14,083
Franchising and other      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenues 128,830 115,185 107,837
Franchising and other | Operating Segments      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Revenues 128,830 115,185 107,837
Cost of sales 29,736 30,100 31,378
Segment contribution $ 99,094 $ 85,085 $ 76,459
v3.25.4
Subsequent Events (Details) - Subsequent event - Clutch Coffee
$ in Millions
Jan. 23, 2026
USD ($)
site
location
Subsequent Event [Line Items]  
Payments to acquire productive assets | $ $ 19.8
Number of locations acquired | location 22
Number of planned development sites acquired | site 20